Location: Ohio County, KY | Metro: Owensboro, KY MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,330 |
| 5 Bedrooms | $1,543 |
| 6 Bedrooms | $1,728 |
| 7 Bedrooms | $1,866 |
| 8 Bedrooms | $1,959 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $96,698 | 1.03% | B |
| 3BR | $1,320 | $158,211 | 0.83% | C |
U.S. Census Bureau data (2024)
The classification of ZIP 42352 (Livermore, KY) reveals a moderate investment opportunity leaning towards a steady-cashflow zone rather than a high-yield/low-stability market. The Federal Market Rent (FMR) for the area in fiscal year 2024 is set at $850, while the market rent stands at $575. This indicates a potential rental shortfall where landlords might struggle to charge the FMR without facing vacancy issues.
To analyze yield, consider the median home value of $129,187. At a market rent of $575, the annual gross rental income would be $6,900. Assuming a conservative vacancy rate of 5%, the net effective annual rental income drops to $6,555. This represents an annualized rental yield of approximately 5.07% when calculated against the median home value. A yield above 5% is generally considered attractive, but it's important to note that the actual yield can vary based on property-specific costs such as maintenance, utilities, and taxes.
Moving to stability, the percentage of renters in the area is 26.0%, which suggests a relatively stable demand for rentals. However, the lack of data on the average days on market (DOM) makes it challenging to assess the speed at which properties can be leased or re-leased, a key indicator of market volatility. The median household income of $53,750 provides insight into the financial health of potential tenants, indicating a moderate ability to pay rent. Given the median rent of $575, this represents about 11.04% of the median income, which is within a reasonable range but leaves little margin for error in case of economic downturns.
In summary, ZIP 42352 presents a scenario where the potential for high yields is limited by the disparity between FMR and market rent. The stability indicators, particularly the income level and the proportion of renters, suggest a steady cash flow environment rather than a volatile market. Landlords and small-portfolio investors should focus on properties that can generate consistent cash flows with minimal risk, given the current data points.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.