Location: Taylor 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 | $830 |
| 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $960 | $144,596 | 0.66% | D |
| 3BR | $1,330 | $222,819 | 0.6% | F |
| 4BR | $1,600 | $289,980 | 0.55% | F |
| 5BR | $1,856 | $383,908 | 0.48% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 42718, encompassing Campbellsville, KY, and the Taylor County, KY metro area, does not favor landlords. The Fair Market Rent (FMR) set at $850 for fiscal year 2024 contrasts sharply with the Census ACS reported market rent of $723. This discrepancy indicates that landlords may struggle to cover costs if they align their rental rates with the FMR, which is higher than what the market currently supports.
Acquisition remains relatively affordable in this region. With a median home value of $210,800, potential investors can enter the market without significant capital outlay. However, the lack of data on days on market (DOM) and the fact that only 0.2% of homes have been subject to price cuts suggest a stable but not highly dynamic market. This could indicate a slower pace of sales and fewer opportunities for aggressive pricing strategies.
Tenant demand is present but limited by the size of the local population. With a total population of 26,768 and a renter share of 30.9%, there are approximately 8,250 renters in the area. While this represents a substantial portion of the market, the overall number of potential tenants is constrained by the modest population size.
Based on these factors, ZIP 42718 offers a mixed outlook for landlords and small-portfolio investors. The mismatch between FMR and market rent suggests that setting rents at the FMR level will be challenging. Acquisition costs are reasonable, but the market dynamics indicate stability rather than rapid growth. Tenant demand exists, yet it is limited by the smaller population size. Therefore, while investment is feasible, it requires careful consideration of rental pricing to ensure profitability.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.