Location: Grayson County, KY | Metro: Grayson 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 | $810 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,580 | $249,019 | 0.63% | D |
U.S. Census Bureau data (2024)
The rent math in ZIP 42726, located in Grayson County, KY metro, does not work favorably for landlords. The Fair Market Rent (FMR) for the area in fiscal year 2026 is set at $1,010, while the current market rent based on Census ACS data is only $903. This discrepancy means that landlords aiming to meet the FMR will face challenges in attracting tenants who are willing to pay the higher rent.
Acquisition in this ZIP code is relatively affordable, with a median home value of $167,561. However, the lack of data on days on market (DOM) and the low 0.2% price-cut share suggest that the housing market may be stable but also somewhat unresponsive to quick sales or significant price adjustments. Landlords should expect to invest in properties at near-market values without much room for negotiation.
Tenant demand in ZIP 42726 is modest. With a total population of 4,758, approximately 24.4% of residents are renters. This indicates a smaller pool of potential tenants compared to areas with higher renter shares, which could make it harder to fill vacancies consistently.
Verdict: While the acquisition cost is reasonable, the mismatch between the FMR and market rent, coupled with a limited tenant base, suggests that investing in ZIP 42726 may not yield optimal returns. Landlords must carefully consider their pricing strategies and possibly seek ways to reduce costs or differentiate their properties to attract the available renters. The area's stability offers some security, but the potential for growth appears constrained by these factors.
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.