Location: Hopkins County, KY | Metro: Clarksville, TN-KY HUD Metro FMR Area
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 | $990 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,690 |
| 4 Bedrooms | $2,040 |
| 5 Bedrooms | $2,366 |
| 6 Bedrooms | $2,650 |
| 7 Bedrooms | $2,862 |
| 8 Bedrooms | $3,005 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,690 | $197,893 | 0.85% | C |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 42442, located in Hopkins County, KY, reveals that the Fair Market Rent (FMR) set by HUD for fiscal year 2024 is $890. This is slightly above the market rent reported by the Census ACS, which stands at $838. Given these figures, voucher tenants in this area will cashflow at the FMR level, though marginally. Landlords should be prepared for some scrutiny on unit quality and maintenance to ensure they meet the requirements for receiving the higher FMR rate.
The median home value in ZIP 42442 is $118,841. Using this figure, we can derive a rent-to-price ratio. Assuming an average mortgage rate and typical financing terms, the rent-to-price ratio suggests that rental properties are undervalued compared to their purchase price. For instance, a property rented at $890 per month would have a price-to-rent ratio of approximately 12.5 times the annual rent, indicating a strong potential for positive cash flow once all expenses are considered.
In terms of days on market (DOM) and the percentage of price cuts, these metrics are not available for ZIP 42442. However, the rent-vs-buy dynamics do matter, as the relatively low median home value implies that homeownership could still be attractive to some residents. This competition between renting and buying can influence vacancy rates and tenant retention, so it's important for investors to stay vigilant regarding local trends.
The strongest investor angle in ZIP 42442 is likely to be cashflow. With HUD's FMR exceeding the market rent, there is an opportunity to generate steady income from voucher tenants. Additionally, the undervaluation of rental properties relative to their purchase price provides a solid foundation for positive cash flow, making this area particularly appealing for those focused on generating rental income.
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.