Location: Henderson County, KY | Metro: Henderson 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 | $840 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $840 | $102,457 | 0.82% | C |
| 2BR | $970 | $119,712 | 0.81% | C |
| 3BR | $1,300 | $214,229 | 0.61% | D |
| 4BR | $1,460 | $301,751 | 0.48% | F |
| 5BR | $1,694 | $396,087 | 0.43% | F |
U.S. Census Bureau data (2024)
The ZIP code 42420, located in Henderson, KY, presents a market in motion, characterized by specific dynamics that influence both landlords and small-portfolio investors. The Fair Market Rent (FMR) for the area is set at $910 for fiscal year 2024, while the actual market rent, according to the Census American Community Survey (ACS), stands at $774. This discrepancy suggests that the market is currently below the federally determined fair rent level, indicating potential upward pressure on rental rates.
A key indicator of market health is the price-cut share, which in this case is only 0.2%. This figure is exceptionally low, implying that landlords are not frequently having to reduce their asking rents to attract tenants. Coupled with a relatively short Days on Market (DOM) of 21 days, it indicates a robust demand for rental properties, as units are filling quickly without significant price adjustments.
The median home value in ZIP 42420 is $199,584. While this figure alone does not provide a complete picture of the market's supply and demand balance, it can be inferred that the market is not experiencing excessive downward pressure on property values, which would typically occur if there were an overabundance of supply relative to demand.
The renter share of 37.9% is noteworthy. In many areas, a higher percentage of renters can signal sustained long-term housing pressure, as these individuals are less likely to purchase homes, thus maintaining steady demand for rental properties. This dynamic can be particularly advantageous for landlords and investors looking for consistent occupancy and rental income.
In summary, ZIP 42420 appears to be a market where demand is strong enough to support current rental levels and even suggests potential for growth. The low price-cut share and quick turnover of rental units indicate that the market is currently more favorable towards those who have properties to rent out, rather than being oversupplied with available rentals. The presence of a significant renter population further supports the idea of a market under long-term housing pressure, which is beneficial for the landlord community.
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.