Location: Wayne County, KY | Metro: Clinton 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 | $830 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $830 | $94,565 | 0.88% | C |
| 2BR | $910 | $124,887 | 0.73% | D |
| 3BR | $1,260 | $178,843 | 0.7% | D |
| 4BR | $1,520 | $241,489 | 0.63% | D |
| 5BR | $1,763 | $306,509 | 0.58% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP 42633 (Monticello, KY, Wayne County) reveals that voucher tenants will cashflow at the HUD Fair Market Rent (FMR) of $870 per month for the Wayne County County, Wayne County, KY metro area in Fiscal Year 2026. This figure is notably higher than the market rent of $726 reported by the Census ACS.
To derive the rent-to-price ratio, we use the median home value of $165,390. This results in a rent-to-price ratio of approximately 0.52%, indicating that the rental income generated by the HUD FMR is relatively low compared to the purchase price of a typical home in the area.
The N/A-day median Days on Market (DOM) and the 0.2% price-cut share suggest that the local real estate market is stable, with minimal fluctuations in property values and quick sales. These factors contribute to a predictable investment environment, which can be advantageous for small-portfolio investors seeking consistent returns.
In conclusion, the strongest investor angle in ZIP 42633 is cashflow. With the HUD FMR significantly exceeding the current market rent, landlords can expect to see positive cashflow from voucher tenants, making this a viable option for those focused on generating rental income.
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.