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 | $690 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,140 |
| 4 Bedrooms | $1,360 |
| 5 Bedrooms | $1,578 |
| 6 Bedrooms | $1,767 |
| 7 Bedrooms | $1,908 |
| 8 Bedrooms | $2,003 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,140 | $273,205 | 0.42% | F |
| 4BR | $1,360 | $382,637 | 0.36% | F |
| 5BR | $1,578 | $491,767 | 0.32% | F |
U.S. Census Bureau data (2024)
The ZIP code 42503 stands out due to its unique demographic and economic profile. With a total of 25,321 residents, 28.4% of whom are renters, it reflects a community where a significant portion of the population relies on rental housing. The median income in ZIP 42503 is $54,707, which is relatively modest compared to other areas, indicating that many residents might require assistance to afford housing. The median home value in the area is $226,493, suggesting that homeownership is somewhat affordable, but still poses a challenge for those with lower incomes.
Moving to the specifics of Section 8 voucher economics, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $970. This figure represents the amount the government deems sufficient for a family to pay for housing without spending more than 30% of their income. However, the current market rent, according to Census ACS data, is $838, which is below the FMR. This discrepancy means that landlords who accept Section 8 vouchers can potentially charge slightly above the market rate, providing a financial incentive to participate in the program.
The data signature for ZIP 42503 reads as stable. The relatively low median income combined with a significant percentage of renters suggests a consistent demand for affordable housing options. While the median home value indicates that homeownership is feasible for some, the majority of residents likely rely on rental housing, making the Section 8 program an important tool for maintaining housing stability in the area. Landlords should consider the benefits of accepting vouchers, including a steady stream of tenants and the ability to charge closer to the FMR rather than the lower market rent.
For small-portfolio investors, the opportunity to invest in rental properties in ZIP 42503 could be lucrative if they align with the needs of voucher holders. The stable economic conditions and the potential to charge above-market rents through the Section 8 program make this ZIP code a viable option for investment. However, it's crucial to understand the local market dynamics and the specific requirements of the Section 8 program to ensure a successful venture.
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.