Location: Taylor County, KY | Metro: Adair 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 | $730 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,310 |
| 5 Bedrooms | $1,520 |
| 6 Bedrooms | $1,702 |
| 7 Bedrooms | $1,838 |
| 8 Bedrooms | $1,930 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $910 | $139,450 | 0.65% | D |
| 3BR | $1,260 | $207,068 | 0.61% | D |
| 4BR | $1,310 | $279,652 | 0.47% | F |
| 5BR | $1,520 | $349,519 | 0.43% | F |
U.S. Census Bureau data (2024)
ZIP 42728, located in Columbia, KY, within the Taylor County, KY metro area, can serve as a cash-flow anchor in a Section 8 portfolio strategy. The Federal Market Rent (FMR) for the area in fiscal year 2026 is set at $870. This figure exceeds the current market rent of $771, providing a guaranteed minimum income above the local average. Additionally, the median home value of $169,060 indicates that the investment property will remain relatively stable in terms of value, ensuring a solid base for long-term financial planning.
The $99 spread between the FMR and the market rent represents a significant cushion for landlords. This means that even if market conditions change, the Section 8 voucher program will still cover a higher rent amount than what is typically charged in the area. This stability is crucial for maintaining positive cash flow, especially during economic downturns when rental demand might decrease.
While the ZIP code shows an appreciation play potential with a 0.2% price-cut share, this factor is less compelling compared to the cash-flow benefits. The median income of $51,623 suggests that the area is not experiencing rapid growth or inflationary pressures that would drive up property values significantly. Furthermore, the N/A-day Days on Market (DOM) implies that there is no immediate pressure from a glut of properties entering the market, which could depress prices.
The 24.0% renter share indicates that there is a moderate demand for rental properties in the area. This makes it a suitable diversifier within a broader portfolio but not the primary focus for aggressive growth strategies. Given the steady income from Section 8 vouchers and the reasonable market rent, landlords can rely on consistent returns without the volatility associated with rapidly appreciating markets.
In summary, ZIP 42728 is best suited as a cash-flow anchor due to the favorable spread between FMR and market rent, combined with stable property values. This strategic positioning ensures that landlords can count on reliable income streams, making it a valuable component of a diversified Section 8 portfolio.
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.