Location: Owensboro, KY | Metro: Owensboro, KY MSA
| 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 |
U.S. Census Bureau data (2024)
The median income in ZIP code 42371 stands at $130,250. However, the market rate for rentals is listed as N/A, which means we cannot accurately assess whether a household can afford the typical rent in this area based on the provided information. What we do know is that the Fair Market Rent (FMR) for the voucher payment standard in ZIP 42371 for fiscal year 2024 is set at $900. This figure represents the maximum amount that the housing choice voucher program will pay towards a tenant's rent.
Given that only 27.1% of the 472 residents are renters, the rental market in ZIP 42371 is relatively small. The affordability gap between the median income and the FMR suggests that many households could potentially cover higher rent costs out-of-pocket, making them attractive candidates for cash-paying tenants rather than those relying on vouchers.
For landlords, this means there is a competitive advantage in targeting cash-paying tenants over those using vouchers. While vouchers provide guaranteed payments, they are capped at the FMR of $900, limiting potential rental income. On the other hand, cash-paying tenants, who represent a significant portion of the local population, may be willing to pay above the FMR, especially considering the high median income.
The takeaway for landlords is clear: focusing on attracting cash-paying tenants can lead to higher revenues compared to solely accepting voucher holders. Landlords should consider marketing their properties to highlight amenities and qualities that appeal to higher-income renters, positioning themselves to capitalize on the area's economic conditions.
Data Sources: FMR data from HUD (2027). 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.