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 | $720 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $980 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $980 | $118,955 | 0.82% | C |
| 3BR | $1,280 | $197,869 | 0.65% | D |
| 4BR | $1,440 | $289,495 | 0.5% | F |
| 5BR | $1,670 | $373,822 | 0.45% | F |
U.S. Census Bureau data (2024)
The market in ZIP 42431, Madisonville, KY, is characterized by a strong presence of renters, with a 33.5% renter share indicating significant long-term housing pressure. This suggests that a substantial portion of the population prefers or requires rental accommodation, which can be seen as a positive signal for landlords and small-portfolio investors looking to capitalize on steady demand.
A comparison between the Fair Market Rent (FMR) of $920, projected for the fiscal year 2026, and the current market rent of $850 as per the Census American Community Survey (ACS) points towards an upward trend in rental prices. This gap implies that rents are likely to increase to meet the FMR benchmark, providing potential for higher returns on investment for those who enter the market now.
The low price-cut share of 0.2% indicates that property values are relatively stable, with little need for sellers to reduce their asking prices. This stability is further supported by the median home value of $160,948. The days on market (DOM) figure of 78 days also reflects a balanced market, neither too quick nor too slow, suggesting that homes are selling at reasonable rates without excessive inventory buildup.
Given these indicators, it appears that demand is closely matching supply, if not slightly outpacing it. The relatively high renter share and the gap between current market rents and the FMR suggest that there is room for growth in rental income. However, the stable median home value and moderate DOM figures indicate that the market is not overheated, but rather in a state of dynamic equilibrium.
For investors, this means that while there is a solid foundation for rental investments due to the high proportion of renters, the market also offers opportunities for property appreciation. The combination of these factors makes ZIP 42431 a promising area for both rental and resale investments, provided that investors are prepared to adapt to the changing landscape of rental pricing over the next few years.
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.