Location: Webster County, KY | Metro: Webster County, KY
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 | $650 |
| 1 Bedroom | $690 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,270 |
| 5 Bedrooms | $1,473 |
| 6 Bedrooms | $1,650 |
| 7 Bedrooms | $1,782 |
| 8 Bedrooms | $1,871 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,240 | $177,401 | 0.7% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 42409, located in Webster County, KY, reveals several key insights for landlords and small-portfolio investors.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for the metro area for fiscal year 2026 is set at $870, while the current market rent based on Census ACS data stands at $922. This indicates that landlords can charge slightly above the FMR, ensuring a positive cash flow if operational costs are managed effectively.
Secondly, regarding the affordability of acquisitions, the median home value in ZIP 42409 is $196,632. However, due to the lack of specific data on days on market (DOM) and the percentage of homes that have been listed with a price cut, it's challenging to determine how competitive the housing market is for potential acquisitions. This absence of detailed market dynamics suggests caution when considering property purchases, as the negotiation landscape might be unpredictable.
Lastly, there is an assessment of tenant demand. With a total population of 2,293 and a renter share of 16.7%, the demand for rental properties is relatively modest. Given these numbers, landlords should expect a smaller pool of potential tenants compared to more densely populated areas.
In conclusion, ZIP 42409 offers a viable opportunity for landlords willing to manage a smaller tenant base and keep a close eye on operational expenses. The ability to charge slightly above the FMR supports positive rent math, but the median home value and uncertain market conditions suggest that acquisitions should be approached with careful consideration. The limited renter share means that investor strategies must focus on efficiency and maintaining high occupancy rates to ensure profitability.
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.