Location: Wayne County, KY | Metro: Casey 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 | $720 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,100 |
| 4 Bedrooms | $1,310 |
| 5 Bedrooms | $1,520 |
| 6 Bedrooms | $1,702 |
| 7 Bedrooms | $1,838 |
| 8 Bedrooms | $1,930 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $910 | $151,454 | 0.6% | D |
| 3BR | $1,100 | $227,504 | 0.48% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 42544, located in Nancy, KY, within the Wayne County, KY metro area, requires careful consideration. The Fair Market Rent (FMR) for the fiscal year 2026 is set at $870, while the current market rent, as per Census ACS data, stands at $764. This indicates that landlords might struggle to cover costs if they aim to align with the FMR, given the lower actual market rates.
Acquisition affordability in this ZIP code is favorable. With a median home value of $142,804, potential investors can find homes at a reasonable price point. However, the lack of data on days on market (DOM) and the fact that only 0.2% of listings experience price cuts suggest that the housing market may be stable but not highly competitive. This stability could imply limited opportunities for acquiring properties below their assessed values.
Tenant demand in ZIP 42544 is modest. The area has a total population of 5,520, with only 11.9% of residents being renters. This low renter share means that landlords will have a smaller pool of potential tenants compared to areas with higher rental shares. Given these conditions, landlords must ensure their properties are well-maintained and competitively priced to attract and retain tenants.
In conclusion, while the acquisition cost in ZIP 42544 is affordable, the rent math does not favor landlords aiming to achieve the FMR due to the lower market rents. Additionally, the relatively low tenant demand poses a challenge. Landlords should focus on optimizing their rental pricing and maintaining high-quality living spaces to maximize occupancy and profitability. For small-portfolio investors, this area offers a balanced opportunity with manageable risks, provided they are prepared for a potentially challenging tenant market.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.