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 | $780 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,040 | $159,949 | 0.65% | D |
| 3BR | $1,370 | $261,932 | 0.52% | F |
| 4BR | $1,420 | $364,584 | 0.39% | F |
U.S. Census Bureau data (2024)
The ZIP code 42376 encompasses a part of Utica, KY, characterized by a modest population size of 6,886 residents. Only 8.7% of these residents are renters, indicating a predominantly owner-occupied neighborhood. The area enjoys a relatively high median household income of $76,098, which suggests a stable economic environment where residents have disposable income. The median home value in the area stands at $242,813, reflecting a moderate cost of living and property investment landscape.
When it comes to rental economics, the Federal Market Rent (FMR) for ZIP 42376 in fiscal year 2024 is set at $1,050. This figure contrasts sharply with the actual market rent reported by the Census Bureau's American Community Survey, which is $791. This discrepancy presents an opportunity for investors, particularly those involved with Section 8 housing, as they can potentially secure properties at below the FMR, thereby benefiting from the subsidy gap.
Given these factors, ZIP 42376 would suit both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the stability of the local economy and the relatively low proportion of renters mean that managing Section 8 properties should be straightforward, with fewer risks associated with tenant turnover and delinquency. For value-add buyers, the potential to acquire properties at a discount relative to the FMR offers a chance to improve the properties and increase their market value over time, leveraging the higher median income of the area to attract better-paying tenants or to sell the improved properties at a profit.
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.