Section 8 Fair Market Rent (FMR) for ZIP 42437 - 2027

Location: Webster County, KY | Metro: Union County, KY

Investment Score for ZIP 42437

C
Monthly Rent (2BR)
$1,020
Median Price (2BR)
$109,779
1% Rule
0.93%
Annual Yield
11.15%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$750
1 Bedroom$780
2 Bedrooms$1,020
3 Bedrooms$1,220
4 Bedrooms$1,390
5 Bedrooms$1,612
6 Bedrooms$1,805
7 Bedrooms$1,949
8 Bedrooms$2,046

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $1,020 $109,779 0.93% C
3BR $1,220 $184,132 0.66% D
4BR $1,390 $243,524 0.57% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
7,064
Median Household Income
$65,256
Housing Units
2,987
Renter Percentage
33.3%
Occupancy Rate
87.5%
Renter Occupied
871

Morganfield, located in ZIP code 42437 of Union County, Kentucky, stands out with a population of 7,064 residents, where 33.3% rent their homes. The median household income in Morganfield is $65,256, while the median home value reaches $156,470. These figures indicate a relatively balanced community with a mix of homeowners and renters.

The voucher economics in Morganfield present an interesting opportunity for landlords. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $940, whereas the current market rent, according to the Census ACS, is $849. This means that landlords participating in the Section 8 program can expect a higher rental rate compared to the local market average, thus providing a financial advantage.

Morganfield's data signature suggests a stable environment for both landlords and small-portfolio investors. The balance between homeowners and renters, combined with the modest gap between the FMR and market rates, indicates that there is a consistent demand for housing, supported by government assistance programs. This stability ensures a predictable cash flow and minimizes the risk of vacancies among properties that accept Section 8 vouchers.

To summarize, Morganfield offers a solid investment opportunity for those interested in Section 8 properties. With a median income that supports a healthy rental market and an FMR that exceeds current market rates, landlords can benefit from a steady stream of income. The community's overall stability further enhances the appeal of investing in this ZIP code.

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.