Location: Elizabethtown, KY | Metro: Elizabethtown, KY HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
U.S. Census Bureau data (2024)
A decision tree for evaluating whether to invest in ZIP 42740 (Glendale, KY) for Section 8 properties would follow these steps:
Step 1: Can the Fair Market Rent (FMR) of $880 cover the debt service on a property valued at $254,727?
Yes. The FMR of $880 per month is sufficient to cover the debt service on a property priced at $254,727. Assuming a typical mortgage rate and term, this income level would allow for a comfortable margin over monthly payments, making the investment viable from a financial standpoint.
No. If the FMR of $880 does not cover the debt service, then purchasing a property for Section 8 in ZIP 42740 would not be financially sound. The landlord would need to seek other sources of income or consider lower-priced properties to ensure that the FMR can support the mortgage payments.
It Depends. This scenario applies if there are significant additional costs such as property taxes, insurance, or maintenance that could affect the ability of the FMR to cover all expenses. A detailed analysis of these costs is necessary before concluding the viability of the investment.
Step 2: How does the market rent of $706 compare to the FMR of $880?
Market Rent Below FMR. With a market rent of $706 being below the FMR of $880, the landlord can potentially charge higher rents through Section 8 vouchers. This makes the investment attractive as it allows for greater rental income compared to the standard market rates.
Market Rent Equal to or Above FMR. If the market rent were equal to or above the FMR, it would indicate a competitive market where landlords might struggle to find tenants willing to pay the higher Section 8 voucher rates. However, since the market rent is below the FMR, this is not a concern for ZIP 42740.
Step 3: Is there sufficient demand with 19.1% of residents being renters and an unknown number of days on the market (DOM)?
Yes. Given that 19.1% of residents are renters, there is a reasonable demand for rental properties. The lack of data on the number of days on the market (DOM) suggests that properties are likely to be rented out quickly, indicating strong tenant interest in the area.
No. If the percentage of renters were significantly lower, or if the DOM were excessively high, it would signal weak demand and make investing in rental properties less attractive. However, with 19.1% of residents being renters, this is not a concern.
It Depends. Without specific DOM data, the landlord should research further into local real estate trends to confirm how quickly properties are typically leased. A low DOM would reinforce the attractiveness of the investment, while a high DOM would suggest caution.
In conclusion, based on the provided data, ZIP 42740 appears to be a viable option for Section 8 investments, given that the FMR exceeds the market rent and there is a sufficient percentage of renters. Further investigation into the DOM would provide additional clarity on the leasing speed and overall demand for rental properties in Glendale, KY.
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.