Location: Pulaski County, KY | Metro: Casey County, KY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,090 |
| 4 Bedrooms | $1,230 |
| 5 Bedrooms | $1,427 |
| 6 Bedrooms | $1,598 |
| 7 Bedrooms | $1,726 |
| 8 Bedrooms | $1,812 |
U.S. Census Bureau data (2024)
The Pulaski County, KY metro area, particularly ZIP code 42516, presents a unique opportunity for Section 8 investors. The HUD Fair Market Rent (FMR) for the area is set at $870 per month for FY 2026, which is the maximum amount that voucher holders can pay towards their rent. However, due to the lack of available data on current market rents, it's challenging to provide an exact comparison. Nonetheless, based on the HUD FMR alone, voucher tenants will cashflow at properties priced at or below the FMR, especially given the median home value of $154,515.
To derive the rent-to-price ratio, we can use the HUD FMR. Assuming a typical rental property value around the median home value, a monthly rent of $870 equates to an annual rent of $10,440. This results in a rent-to-price ratio of approximately 6.7%, indicating that the rental income is relatively low compared to the property value. This suggests that the primary benefit for investors in this area would likely be stability rather than high cash flow or rapid appreciation.
The lack of specific data on days on market (DOM) and the percentage of price cuts indicates that there might not be significant fluctuations in the housing market, which supports the notion of stability. Investors should focus on acquiring properties that are well-maintained and located in stable neighborhoods to ensure long-term tenant retention and minimize turnover costs.
The strongest investor angle in ZIP 42516 is stability. Given the low rent-to-price ratio and the absence of volatile market conditions, investments here are likely to provide consistent, reliable returns over time without the risk of rapid depreciation or appreciation.
Data Sources: FMR data from HUD (2027). 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.