Location: Hopkins County, KY | Metro: Clarksville, TN-KY HUD Metro FMR Area
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 | $990 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,690 |
| 4 Bedrooms | $2,040 |
| 5 Bedrooms | $2,366 |
| 6 Bedrooms | $2,650 |
| 7 Bedrooms | $2,862 |
| 8 Bedrooms | $3,005 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,220 | $122,175 | 1% | C |
| 3BR | $1,690 | $180,812 | 0.93% | C |
U.S. Census Bureau data (2024)
The ZIP code 42408, located in Dawson Springs, KY, has a population of 5,888 residents. With 24.1% of the population being renters, this area is moderately renter-heavy but not dominated by rental housing. The median household income stands at $60,900, which provides insight into the financial capacity of potential tenants.
A typical market rent of $560 is significantly lower than the Fair Market Rent (FMR) of $890 for FY 2024, indicating that landlords can offer competitive rents while still being below the federally set standard. This suggests that there is a reasonable amount of voucher demand in the area, though it's not considered to be deeply saturated with voucher users.
To put the rent into perspective, a monthly rent of $560 represents approximately 11% of the median household income. This is a relatively low percentage, implying that most households could afford rent without assistance. However, given the economic conditions and the presence of a sizeable renter population, landlords should expect some tenants to use Section 8 vouchers.
When considering the FMR of $890, the current market rent of $560 is only about 63% of the FMR. This gap indicates that landlords have room to increase rents without exceeding the voucher limits, potentially attracting tenants who qualify for higher voucher amounts due to the ZIP's income levels.
The expected tenant profile in ZIP 42408 would include individuals and families with incomes up to 50% of the area median income (AMI), which is around $30,450 based on the median income of $60,900. Landlords should prepare for a mix of tenants, including those who might rely on Section 8 vouchers to cover their rent, as well as others who can pay market rates independently. Given the lower market rent compared to the FMR, it's likely that many voucher holders will find the area attractive, leading to a robust demand for subsidized housing.
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.