Location: Hopkins County, KY | Metro: Hopkins 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 | $690 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,220 | $265,292 | 0.46% | F |
U.S. Census Bureau data (2024)
The ZIP code 42413 presents an interesting balance between yield and stability, making it a strategic choice for landlords and small-portfolio investors. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,070, while the market rent stands at $760. This indicates that there is potential for higher rental yields if properties can be leased closer to the FMR. However, the median home value in the area is $249,494, which suggests that the cost of entry into this market is moderate.
On the stability axis, the ZIP code shows a less favorable picture. Only 12.8% of the residents are renters, which could imply a smaller pool of potential tenants. The average daily days on market (DOM) is not available, which might indicate either a very quick or slow-moving market, but without specific data, we cannot make a definitive call. The median household income is $95,417, which is relatively low compared to national averages, potentially affecting the ability of residents to afford higher rents.
Given these figures, ZIP 42413 does not fit neatly into a high-yield/low-stability "flip-style" market or a steady-cashflow zone. Instead, it occupies a middle ground where the potential for higher yields exists due to the disparity between the FMR and the actual market rent. However, the lower percentage of renters and the possibly lower income levels suggest that achieving steady cash flow might require careful tenant selection and competitive pricing strategies to attract and retain tenants.
To maximize returns, landlords should consider setting rents slightly below the FMR to remain attractive to the local market. Additionally, focusing on areas with higher concentrations of renters or exploring ways to increase the desirability of rental units through strategic upgrades could help improve occupancy rates and overall 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.