Section 8 Fair Market Rent (FMR) for ZIP 42565 - 2027

Location: Casey County, KY | Metro: Casey County, KY

Investment Score for ZIP 42565

N/A

Monthly Rent (2BR)

$920

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	$660
1 Bedroom	$850
2 Bedrooms	$920
3 Bedrooms	$1,100
4 Bedrooms	$1,210
5 Bedrooms	$1,404
6 Bedrooms	$1,572
7 Bedrooms	$1,698
8 Bedrooms	$1,783

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$1,100	$188,038	0.58%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

758

Median Household Income

$70,692

Housing Units

307

Renter Percentage

28.5%

Occupancy Rate

94.8%

Renter Occupied

The median income in ZIP code 42565 stands at $70,692, which positions many households to struggle with the market rate rent of $648 per month. While this figure might seem manageable on its own, it becomes less so when considering the broader financial landscape.

The Federal Market Rent (FMR) for the area, set at $910 for metro FY 2026, represents a significant challenge for renters. This means that the voucher payment standard is higher than the current market rate, indicating a potential opportunity for landlords who accept vouchers.

With 28.5% of the 758 residents being renters, the competition among landlords is moderate. However, the disparity between the median income and the FMR suggests an affordability gap that could influence rental strategies.

Landlords in ZIP 42565 should consider the following:

Voucher Acceptance: Given the higher FMR compared to the market rate, accepting vouchers could ensure a steady stream of tenants without significantly reducing rental income. The $910 voucher payment exceeds the current market rate, making it a financially viable option.
Cash-Pay Strategy: For those focusing on cash-paying tenants, it's important to recognize that the median income only slightly outpaces the market rate rent. Landlords should be prepared for potential tenant turnover and may need to offer competitive amenities or services to attract and retain renters.

The takeaway for landlords is that accepting Section 8 vouchers can provide a reliable income source above the current market rate. However, landlords who choose to focus on cash-paying tenants must carefully manage their properties to remain attractive in a market where affordability is a concern. Both strategies have their merits depending on the landlord's goals and the local rental dynamics.

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.