Section 8 Fair Market Rent (FMR) for ZIP 42445 - 2027

Location: Lyon County, KY | Metro: Clarksville, TN-KY HUD Metro FMR Area

Investment Score for ZIP 42445

Monthly Rent (2BR)

$1,220

Median Price (2BR)

$105,160

1% Rule

1.16%

Annual Yield

13.92%

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	$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

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,220	$105,160	1.16%	B
3BR	$1,690	$174,531	0.97%	C
4BR	$2,040	$221,811	0.92%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

10,533

Median Household Income

$55,096

Housing Units

4,912

Renter Percentage

34.1%

Occupancy Rate

87.7%

Renter Occupied

1,470

The ZIP code 42445, encompassing Princeton, KY, offers a stable real estate market with a mix of rental and homeownership opportunities. This area is characterized by a moderate cost of living and a blend of residential properties that cater to both tenants and buyers.

The Fair Market Rent (FMR) for ZIP 42445 in fiscal year 2024 is set at $890, providing a benchmark for rental pricing in the area.
The average market rent, according to the latest Census ACS data, stands at $768, indicating that rental prices are slightly below the FMR.
The median home value in ZIP 42445 is $144,951, offering affordability for potential homeowners and investors looking to purchase property.
Renters make up 34.1% of the population, suggesting a significant but not overwhelming demand for rental units.
The median income for residents is $55,096, which supports a modest level of economic activity and consumer spending power in the area.
While the number of days on the market (DOM) is not available, the combination of median home values and rental rates indicates a balanced market where both options can be viable investments.

In summary, ZIP 42445 presents a real estate landscape that is favorable for small-portfolio investors and landlords. The relatively low median home value and rental rates suggest a market that is accessible for those seeking to enter the investment space. However, the gap between the market rent and the FMR highlights an opportunity for landlords to potentially increase rents without alienating tenants. With a sizeable portion of the population renting, there remains a steady demand for rental properties, though the economic conditions indicate that investors should be cautious about setting excessively high prices. Overall, the area's economic indicators and housing statistics support a conservative yet profitable approach to real estate investment.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.