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 | $850 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,120 | $184,484 | 0.61% | D |
| 3BR | $1,480 | $295,776 | 0.5% | F |
| 4BR | $1,490 | $395,812 | 0.38% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 42366, Philpot, KY, for fiscal year 2024 is set at $1030. This figure represents the maximum amount the government will pay landlords participating in the Section 8 Housing Choice Voucher program. It's important to note that this is not the rent you can charge tenants; it's the reimbursement limit for the government.
To put this into perspective, the average rent for the area, according to the latest Census American Community Survey (ACS), is $878. This indicates that the FMR is higher than the typical market rate, which could be beneficial for landlords looking to offset some of the costs associated with renting properties in this area.
The renter share in Philpot is 9.7%, meaning nearly one in ten residents are likely to seek rental housing. This suggests there is a steady demand for rentals, especially those covered by Section 8 vouchers, as they provide affordable options for low-income families. Given the local demographics, participating in the Section 8 program can ensure a stable tenant base.
If you're considering purchasing a property to use as a Section 8 rental, the median home value in Philpot is around $269,608. This price point reflects the typical cost of acquiring a home in the area, which should be factored into your investment calculations. When estimating returns, remember that the reimbursement is capped at the FMR, so properties priced above this level might not be suitable for Section 8 participation.
Before finalizing your decision, verify that the property meets all the required standards for the Section 8 program. These include safety, health, and habitability criteria established by HUD. Ensuring compliance upfront saves time and money in the long run.
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.