Location: Pulaski County, KY | Metro: Pulaski 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 | $650 |
| 1 Bedroom | $690 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,080 |
| 4 Bedrooms | $1,290 |
| 5 Bedrooms | $1,496 |
| 6 Bedrooms | $1,676 |
| 7 Bedrooms | $1,810 |
| 8 Bedrooms | $1,901 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,080 | $220,090 | 0.49% | F |
| 4BR | $1,290 | $282,639 | 0.46% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP 42501 within Pulaski County, KY metro, reveals several key points. The HUD Fair Market Rent (FMR) for the area is set at $890 for fiscal year 2026, which is higher than the market rent reported by the Census American Community Survey (ACS) at $748. This indicates that voucher tenants will generally cashflow at the FMR rate, providing a positive financial outlook for landlords.
To further analyze the investment potential, consider the median home value in the area, which stands at $151,794. Using this figure, we can calculate the rent-to-price ratio. With a market rent of $748, the ratio is approximately 0.5%, suggesting that rental properties offer a better return compared to homeownership. However, since the HUD FMR is higher at $890, the adjusted rent-to-price ratio increases to about 0.6%, making it even more attractive for rental investments.
The dynamics between renting and buying also matter. The N/A-day median Days on Market (DOM) and the 0.3% price-cut share indicate a stable housing market with little pressure to lower asking prices. This stability supports the long-term viability of rental investments, as it suggests minimal risk of property values declining due to oversupply.
In conclusion, the strongest investor angle in ZIP 42501 is cashflow. The difference between the HUD FMR and market rent ensures that voucher tenants will provide consistent, positive cashflow, making this an ideal location for landlords and small-portfolio investors looking to maximize their returns.
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.