Location: McCreary County, KY | Metro: McCreary 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 | $730 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,240 | $116,544 | 1.06% | B |
U.S. Census Bureau data (2024)
The Section 8 market in ZIP code 42634, located in McCreary County, Kentucky, offers a unique opportunity for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the area, as of fiscal year 2026, stands at $920 per month. However, due to the lack of current market rent data, it's challenging to provide a direct comparison. Based on the available HUD FMR, voucher tenants in this region will cashflow at FMR rates, meaning landlords can expect to cover their expenses and make a profit without relying on premium units.
To further analyze the investment potential, consider the median home value in the area, which is $70,296. This figure helps us derive the rent-to-price ratio, an important metric for understanding the local housing market dynamics. Given the median home value and the FMR, the rent-to-price ratio is relatively favorable, indicating that rental income can be a significant portion of the total cost of homeownership. This ratio suggests that the rental market is stable and provides a good return relative to property values.
In terms of the days on market (DOM) and the percentage of price cuts, the data is currently unavailable. Nonetheless, these metrics are crucial for understanding the balance between renting and buying in the area. If the DOM is high and the percentage of price cuts is substantial, it would imply a slower sales market, potentially making rental properties more attractive to investors.
The strongest investor angle in ZIP code 42634 is stability. With a predictable FMR and a favorable rent-to-price ratio, landlords can anticipate consistent cash flow and a steady demand for rental properties, making it an attractive option for those seeking a reliable investment.
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.