Location: Hart County, KY | Metro: Hart 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 | $800 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,130 |
| 4 Bedrooms | $1,260 |
| 5 Bedrooms | $1,462 |
| 6 Bedrooms | $1,637 |
| 7 Bedrooms | $1,768 |
| 8 Bedrooms | $1,856 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $910 | $138,375 | 0.66% | D |
| 3BR | $1,130 | $204,028 | 0.55% | F |
U.S. Census Bureau data (2024)
ZIP 42713, located in Bonnieville, KY, within the Hart County, KY metro area, presents an interesting opportunity for inclusion in a Section 8 portfolio strategy. This area serves best as a cash-flow anchor. The primary reason is the significant spread between the Fair Market Rent (FMR) set by HUD for the fiscal year 2026 and the actual market rents.
The FMR for the Bonnieville, KY metro area for fiscal year 2026 is $870. However, the current market rent in ZIP 42713 stands at $682. This means that landlords can potentially receive higher rental payments through Section 8 vouchers, which will cover the difference up to the FMR. Given the median home value of $170,507, the financial stability offered by this spread ensures steady cash flow, even if the property values do not appreciate significantly over time.
While there is no data on price-cut share or days on market (DOM), the lack of these metrics does not detract from the area's potential as a cash-flow anchor. The focus should be on the guaranteed income stream provided by the Section 8 program, which helps mitigate risks associated with vacancy and non-payment.
The area also offers some diversification benefits. With a 24.3% renter share and a median income of $60,000, there is a substantial pool of potential tenants who might benefit from the Section 8 program. This mix of renters and homeowners can provide a balanced tenant base, reducing dependency on any single economic indicator.
In conclusion, ZIP 42713 is most suitable as a cash-flow anchor within a Section 8 portfolio strategy. The guaranteed income from the voucher program, combined with the lower market rents compared to the FMR, provides a stable and predictable revenue stream, making it a reliable choice for landlords and small-portfolio investors looking to secure their investments against market fluctuations.
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.