Location: Henderson County, KY | Metro: Henderson 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 | $840 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,300 | $216,648 | 0.6% | D |
U.S. Census Bureau data (2024)
The ZIP code 42458 in Henderson County, KY, is well-suited for a Section 8 portfolio strategy as a cash-flow anchor. The Fair Market Rent (FMR) for FY 2024 is set at $910, which is higher than the typical market rent, providing a reliable income stream. This spread between the FMR and the median home value of $175,330 ensures that landlords can maintain positive cash flow even when market rents fluctuate.
The area's median income stands at $58,839, indicating a stable economic environment where a significant portion of residents can afford to pay the FMR. Additionally, the 10.0% renter share suggests a steady demand for rental properties, further supporting the cash-flow anchor designation.
Despite the lack of specific appreciation indicators such as price-cut share and days on market (DOM), the YoY change in home values shows a modest increase of 0.6%, suggesting stability rather than rapid growth. This makes ZIP 42458 a reliable choice for landlords looking to ensure consistent returns without the risk associated with volatile markets.
In summary, ZIP 42458 serves as a strong cash-flow anchor within a Section 8 portfolio due to the favorable spread between the FMR and median home value, coupled with a stable local economy and consistent demand for rental properties.
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.