Location: Lyon County, KY | Metro: Caldwell 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 | $700 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,100 |
| 4 Bedrooms | $1,310 |
| 5 Bedrooms | $1,520 |
| 6 Bedrooms | $1,702 |
| 7 Bedrooms | $1,838 |
| 8 Bedrooms | $1,930 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $910 | $144,912 | 0.63% | D |
| 3BR | $1,100 | $190,105 | 0.58% | F |
U.S. Census Bureau data (2024)
ZIP code 42411, located in Princeton, KY, is situated within the broader Lyon County, KY metro area. Its Federal Market Rent (FMR) of $870 for fiscal year 2026 represents the maximum rental subsidy for low-income families under the U.S. Department of Housing and Urban Development's (HUD) Section 8 program. This figure is higher than the actual market rent of $543, indicating that landlords participating in the Section 8 program could potentially receive a higher rental income than what the open market currently offers.
The median home value in ZIP 42411 stands at $176,953, which is likely below the average for the entire Lyon County metro. This suggests that while the property values are relatively affordable, they may not be considered among the lowest in the region, thus positioning 42411 as a mid-tier neighborhood rather than a value pocket. However, the 10.8% renter share is a critical factor in assessing its attractiveness to landlords and small-portfolio investors. A higher-than-average percentage of renters can signal a greater demand for rental properties, particularly those that qualify for Section 8 subsidies.
In summary, ZIP 42411 appears to be a mid-tier neighborhood within the Lyon County, KY metro. The discrepancy between the FMR and the actual market rent, combined with a slightly above-average renter share, indicates that it could serve as an attractive location for landlords looking to balance affordability with demand for subsidized housing. This makes it a viable option for investors seeking to enter the Section 8 market without compromising on property quality or location too much.
Note that without comprehensive data on all ZIP codes within the Lyon County metro, definitive conclusions about its status as a value pocket or premium sub-market cannot be drawn. However, based on the provided figures, it leans towards being a mid-tier neighborhood with potential advantages for Section 8 participation.
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.