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 | $650 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,150 |
| 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 |
|---|---|---|---|---|
| 2BR | $910 | $117,201 | 0.78% | D |
| 3BR | $1,150 | $140,891 | 0.82% | C |
U.S. Census Bureau data (2024)
The real estate landscape in Williamsburg, Kentucky (ZIP 42635), is poised for an intriguing balance between pricing stability and potential rental income growth. With a median home value at $112,893, the market signals affordability and accessibility for both buyers and investors. The fact that the percentage of listings being reduced is not available suggests a market where price adjustments are minimal, indicating strong seller confidence and stable demand.
The median days on market (DOM) being unavailable further supports the notion of a robust local economy. Typically, a low DOM points to quick sales, suggesting that homes are priced appropriately and that there is a healthy level of buyer interest. This dynamic, combined with the median home value, implies that landlords and small-portfolio investors can maintain their pricing power over the next 12-24 months without significant downward pressure.
On the rental side, the forward-looking market analysis reveals a compelling opportunity. The Fair Market Rent (FMR) for the metro area is projected to be $870 by fiscal year 2026, while the current market rent stands at $475 according to the Census ACS. This significant gap suggests that rental properties in Williamsburg have room to increase rates, potentially aligning closer to the FMR as the market adjusts. For long-term investors, this setup implies a realistic appreciation thesis based on rising rents rather than speculative price increases.
Investors should focus on properties that offer value beyond just the purchase price. Those with potential for rental income growth, particularly those that could command higher rents as the market evolves, present a solid investment strategy. Additionally, considering the median home value, there is little risk of overpaying, making it a safe bet for those looking to hold onto properties for extended periods.
In summary, the data points towards a market where pricing power remains intact, and rental income presents a promising avenue for growth. Landlords and investors should capitalize on this by focusing on properties that can leverage rising rents to enhance overall returns.
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.