Location: Grayson County, KY | Metro: Elizabethtown, KY HUD Metro FMR Area
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 | $760 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,330 | $225,182 | 0.59% | F |
U.S. Census Bureau data (2024)
The median income in ZIP 42712 stands at $45,870, which places significant constraints on the average household's ability to pay rent. The market rate for rent, according to the Census ACS, is $587. This figure represents the typical cost a tenant might expect to pay for housing in this area. However, when compared to the voucher payment standard of Fair Market Rent (FMR) set at $850 for fiscal year 2024, it becomes evident that there is a notable disparity between what tenants can afford and what landlords might receive through voucher programs.
With only 12.6% of the population being renters and a total population of 1,714, the competition among landlords for tenants who can pay the market rate is likely to be intense. The affordability gap means that many potential renters may struggle to meet the $587 market rate, let alone the higher FMR payment standard of $850. This situation could lead to a scenario where landlords must choose between accepting lower rents from tenants who cannot afford the market rate or participating in voucher programs to secure higher rental payments.
The takeaway for landlords considering their strategy is clear: while the market rate of $587 is below the FMR payment of $850, the limited number of renters in ZIP 42712 suggests that securing tenants willing to pay even the market rate may prove challenging. Landlords should weigh the benefits of receiving a guaranteed $850 per month through voucher programs against the risks of prolonged vacancies due to the high cost relative to local incomes. Given the financial stability offered by vouchers and the potential difficulty in finding cash-paying tenants, participating in voucher programs could be a prudent move to ensure steady 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.