Section 8 Fair Market Rent (FMR) for ZIP 42462 - 2027

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

Investment Score for ZIP 42462

N/A

Monthly Rent (2BR)

$1,060

Median Price (2BR)

$N/A

1% Rule

Annual Yield

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	$820
1 Bedroom	$840
2 Bedrooms	$1,060
3 Bedrooms	$1,310
4 Bedrooms	$1,480
5 Bedrooms	$1,717
6 Bedrooms	$1,923
7 Bedrooms	$2,077
8 Bedrooms	$2,181

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
3BR	$1,310	$176,066	0.74%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

1,546

Median Household Income

$66,373

Housing Units

580

Renter Percentage

19.1%

Occupancy Rate

85.9%

Renter Occupied

The ZIP code 42462, located in a suburban setting of Kentucky, offers a stable environment for real estate investment, particularly for those interested in the Section 8 housing market. The area benefits from a mix of rental and owner-occupied properties, providing opportunities for both types of investments.

The Fair Market Rent (FMR) for ZIP 42462 for fiscal year 2024 is set at $940, which is the benchmark for Section 8 rental subsidies.
The average market rent in the area, according to the latest Census American Community Survey (ACS), stands at $975, indicating that market rents slightly exceed the FMR.
The median home value in ZIP 42462 is $167,319, offering relatively affordable entry points for property acquisition.
Renters make up 19.1% of the population, suggesting a moderate demand for rental properties.
The median income for residents is $66,373, which supports the ability to pay higher rents beyond the FMR, but also indicates a reliance on subsidized housing options.

Investors looking to enter the Section 8 market in ZIP 42462 should find the area attractive due to the close alignment between market rents and the FMR, ensuring profitability while meeting tenant needs. The median home value suggests a lower barrier to entry, making it feasible for small-portfolio investors to acquire properties. However, the moderate renter share implies a balanced market, neither overwhelmingly dominated by renters nor by homeowners, thus requiring careful consideration of the local demand for subsidized housing. The median income figure supports the financial stability of tenants, reducing the risk of default on rental payments.

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.