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 | $710 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,200 |
| 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 |
|---|---|---|---|---|
| 2BR | $960 | $109,855 | 0.87% | C |
| 3BR | $1,200 | $142,826 | 0.84% | C |
U.S. Census Bureau data (2024)
ZIP code 42649, located in Strunk, Kentucky, represents a modest-sized neighborhood with a population of 2,003. Approximately 23.5% of the residents are renters, indicating a community where a significant portion of the populace owns their homes. The median household income stands at $38,382, which suggests an area where many families live comfortably but without excess wealth. The median home value in the area is $114,693, reflecting a housing market that is accessible to middle-income earners.
Moving into the economic analysis of renting, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $920. However, the actual market rent, according to Census ACS data, is significantly lower at $443 per month. This disparity highlights a potential opportunity for landlords who can offer quality rental properties at rates closer to the FMR, thereby attracting tenants with higher incomes or those receiving Section 8 vouchers.
The question then arises: Is this area suitable for a hands-off voucher operator or a hands-on value-add buyer? Given the low market rent compared to the FMR, a hands-on approach would likely yield better returns. A value-add buyer could improve the condition and amenities of existing properties, justifying higher rents that align more closely with the FMR. This strategy would be particularly effective in attracting voucher holders and other renters who benefit from affordable housing options but seek better living conditions.
In contrast, a hands-off operator might struggle with maintaining competitive occupancy rates, especially if they do not invest in property improvements. The lower market rent indicates that there is ample room to increase rental income through thoughtful enhancements and management practices, making a proactive investment strategy more advantageous in ZIP 42649.
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.