Location: Casey 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 | $660 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,100 |
| 4 Bedrooms | $1,270 |
| 5 Bedrooms | $1,473 |
| 6 Bedrooms | $1,650 |
| 7 Bedrooms | $1,782 |
| 8 Bedrooms | $1,871 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,100 | $155,728 | 0.71% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 42566 reveals a unique balance between yield potential and market stability, making it an interesting consideration for real estate investors. The Fair Market Rent (FMR) for the area is pegged at $880 for the fiscal year 2026, which contrasts sharply with the median home value of $134,503. This suggests a relatively low-cost entry point into the housing market while maintaining decent rental income potential.
When comparing the FMR against the median home value, we see a significant gap that could translate into attractive yields. However, the stability of the market is a different story. With only 7.5% of residents being renters, the demand for rental properties is limited. Additionally, the lack of data on days-on-market (DOM) indicates either a very stable market where homes are rarely listed for rent, or an underdeveloped rental sector.
The average income figure of $60,156 provides insight into the financial capacity of the local population. While this income level supports the possibility of covering higher rents, the low percentage of renters suggests that the majority of residents prefer homeownership over leasing. This dynamic can be indicative of a low-stability market due to the potential for rapid shifts in the rental supply and demand.
Based on these figures, ZIP 42566 does not fit neatly into the categories of high-yield/low-stability or steady-cashflow zones. Instead, it represents a market that is somewhat in between. The low median home value and decent FMR suggest opportunities for positive cash flow, particularly if the investor can leverage low-cost acquisition strategies. However, the low renter population and uncertain DOM data imply that the market lacks the robustness required for high-stability investments. Therefore, investors should approach this market cautiously, focusing on properties that can offer both reasonable returns and a degree of security.
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.