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 | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $156,037 | 0.64% | D |
| 3BR | $1,320 | $256,527 | 0.51% | F |
U.S. Census Bureau data (2024)
Whitesville, KY, located in ZIP code 42378, is a modest-sized community with a population of 3,513 residents. Only 9.9% of the residents are renters, indicating a predominantly owner-occupied area. The median household income here stands at $73,419, which is relatively high compared to many rural areas, suggesting a stable economic base. The median home value in Whitesville is $214,085, reflecting a middle-class neighborhood where homeownership is both feasible and valued.
Turning to the rental market, the Fair Market Rent (FMR) for ZIP 42378 in fiscal year 2024 is set at $910. This compares favorably to the market rent of $873 as reported by the Census Bureau's American Community Survey. The higher FMR suggests that landlords participating in the Section 8 program could potentially see a slight premium over the local market rates, though the difference is marginal.
The low percentage of renters and the modest size of the community imply that the demand for rental properties, especially those under the Section 8 program, might be limited. For a hands-off voucher operator, this ZIP code may present challenges due to the smaller pool of eligible tenants and the need for constant screening and management to ensure compliance with the program requirements.
On the other hand, a hands-on value-add buyer could find opportunities in this area. With the potential to increase rents slightly above the market rate but below the FMR, there is room for strategic investment. However, such an investor would need to be prepared to actively manage the property, possibly renovate to attract Section 8 tenants, and work closely with the local housing authority to navigate the intricacies of the program.
In conclusion, ZIP 42378 in Whitesville, KY, offers a niche opportunity for Section 8 investors. While it may not suit a passive landlord due to the limited rental market, it presents a viable option for those willing to engage actively in managing and improving their properties to meet the needs of the Section 8 program and its tenants.
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.