Location: Ohio County, KY | Metro: Bowling Green, KY HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 42721 in the Ohio County, KY metro area reveals several key points for landlords and small-portfolio investors considering investment in this region.
The first question to address is whether the rent math works. The Fair Market Rent (FMR) for ZIP 42721 in fiscal year 2024 is set at $850. However, the market rent based on Census ACS data stands at $590. This indicates that the rent math does not currently work in favor of landlords, as the market rate is significantly below the FMR. Landlords would need to either adjust their rental rates to align with the market or find ways to reduce costs to maintain profitability.
Moving on to the affordability of acquisition, the median home value in ZIP 42721 is $164,069. While this figure suggests that property acquisition could be relatively affordable compared to higher-cost areas, the lack of data on days on market (DOM) and the percentage of homes needing price cuts (price-cut share) makes it difficult to assess the overall ease of acquiring properties at favorable terms. Investors should conduct further research to understand local market conditions and the likelihood of negotiating better purchase prices.
Regarding tenant demand, the ZIP code has a total population of 4,353, with 18.9% of residents being renters. This indicates a modest but present demand for rental housing. However, the relatively low renter share suggests that competition among landlords could be fierce, and vacancy rates might be higher than in areas with a larger proportion of renters. Additionally, the small population size means that the overall number of potential tenants is limited, which could affect the scalability of rental investments.
In summary, while the median home value in ZIP 42721 presents an opportunity for affordable acquisitions, the current market rent is below the FMR, indicating challenges in achieving desired rental income. The tenant demand is present but limited due to the small population and low renter share. Investors must carefully consider these factors before proceeding, ensuring they have a solid strategy to manage rental rates and property acquisition costs effectively.
Data Sources: FMR data from HUD (2027). 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.