Location: Elizabethtown, 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 | $790 |
| 2 Bedrooms | $980 |
| 3 Bedrooms | $1,360 |
| 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $980 | $129,119 | 0.76% | D |
| 3BR | $1,360 | $233,968 | 0.58% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate scenario for ZIP code 42732, Eastview, KY, can be analyzed based on the Fair Market Rent (FMR) and median home value data available. For a two-bedroom unit, the annualized FMR for fiscal year 2024 is set at $850 per month, equating to an annual rental income of $10,200. Given the median home value of $195,710, the implied gross yield when considering the FMR would be approximately 5.21%. This calculation is derived by dividing the annual rental income by the property's value.
However, the market rent for the area is listed as N/A, indicating a lack of reliable data on what the average rent might be outside of the Section 8 program. Without this figure, it's challenging to provide a precise comparison to the FMR-based gross yield. But, assuming that the market rent could potentially be higher than the FMR, the gross yield would also increase accordingly. For instance, if the market rent were hypothetically $1,000 per month, the annual rental income would be $12,000, leading to a gross yield of about 6.13%.
The gross yield comparison between these two scenarios highlights the financial implications for landlords. With the FMR at $850 per month, the yield is lower compared to a potential market rent of $1,000 per month. The lower yield under the FMR suggests that participating in the Section 8 program may result in less immediate cash flow relative to the property's value.
Given the renter density of 7.7%, it's important to consider the demand for rental properties in Eastview, KY. A lower renter density implies fewer potential tenants, which could affect the occupancy rate and, consequently, the actual rental income. Additionally, the N/A-day Days on Market (DOM) indicates that there isn't sufficient data to determine how quickly properties are rented out, further complicating the analysis.
In conclusion, while the FMR-based gross yield of 5.21% provides a clear benchmark for Section 8 participation, the hypothetical higher market rent scenario suggests a more attractive yield of 6.13%. Landlords and small-portfolio investors must weigh these yields against the stability of tenant payments and the administrative requirements of the Section 8 program. The uncertainty around market rents and rental dynamics in Eastview underscores the need for careful consideration before making investment decisions.
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.