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 | $770 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,300 |
| 5 Bedrooms | $1,508 |
| 6 Bedrooms | $1,689 |
| 7 Bedrooms | $1,824 |
| 8 Bedrooms | $1,915 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,230 | $223,506 | 0.55% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 42733 stands at $81,250, providing a baseline for understanding the financial capabilities of households in the area. However, the absence of specific market rate rental data indicates a need for further investigation into local rental prices. Despite this lack of detail, it's clear that the Fair Market Rent (FMR) standard set for vouchers, which is $870 per month for the metro area in fiscal year 2026, represents a significant affordability gap.
To contextualize this, let's consider the broader implications for landlords and small-portfolio investors. The voucher payment standard is designed to ensure that low-income families can afford housing without spending more than 30% of their income on rent. This means that even if the market rate for rentals is higher, landlords accepting vouchers must be prepared to receive payments closer to the $870 mark. In ZIP 42733, where 22.2% of the 1,610 population are renters, competition for tenants is likely influenced by the affordability gap.
Landlords in this area should take note that while the median income suggests potential for higher rents, the reality of the voucher system means that a portion of the rental market is tied to lower payment rates. This could impact the overall strategy for attracting tenants, especially those who might rely on government assistance.
The takeaway for landlords considering whether to adopt a voucher versus cash-pay strategy is straightforward: accepting vouchers can stabilize income streams but will limit the ability to charge higher rents. Conversely, focusing on cash-paying tenants might offer greater revenue opportunities but requires a thorough understanding of the local rental market dynamics and the willingness to cater to a potentially smaller segment of the population.
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.