Location: Webster 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 | $750 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,330 | $230,837 | 0.58% | F |
U.S. Census Bureau data (2024)
In ZIP code 42441, there are several potential risks for landlords considering Section 8 investments. First, tenant turnover could be a significant issue due to the slight difference between the market rent of $919 and the Fair Market Rent (FMR) of $910 for fiscal year 2026, in the metropolitan area. This narrow gap may lead to tenants seeking better deals elsewhere, increasing the likelihood of frequent turnovers.
The vacancy exposure is another concern, as the Days on Market (DOM) for the area is currently unknown. Without this information, it's difficult to predict how long properties might remain vacant between tenancies, which can affect cash flow and profitability.
Deferred maintenance is also a risk, especially given the typical home value of $165,948 and a median income of $54,219. The disparity between these figures suggests that residents may struggle to cover maintenance costs, leading to potential wear and tear issues that landlords will need to address.
However, these risks must be weighed against the 9.9% renter share, which indicates a high concentration of renters in the area. A higher renter density typically translates into greater demand for rental housing, including units available through Section 8 vouchers. This demand can help stabilize occupancy rates and provide a steady stream of tenants.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.