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 | $830 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,190 |
| 4 Bedrooms | $1,200 |
| 5 Bedrooms | $1,392 |
| 6 Bedrooms | $1,559 |
| 7 Bedrooms | $1,684 |
| 8 Bedrooms | $1,768 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $910 | $136,676 | 0.67% | D |
| 3BR | $1,190 | $190,207 | 0.63% | D |
| 4BR | $1,200 | $236,080 | 0.51% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 42743, centered around Greensburg, KY, highlights a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $880, while the Census ACS data indicates an average market rent of $591. This results in a gap of $289, or approximately 49%, between what landlords can charge through the Section 8 program and the prevailing open-market rental rates.
In Greensburg, KY, where 23.7% of residents are renters, the median home value stands at $183,666, and the median household income is $49,457. Given these economic conditions, the disparity between the FMR and the market rent makes the ZIP code a compelling yield play for landlords. Voucher tenants, who are guaranteed rental payments up to the FMR level, provide a stable income source that is notably higher than the typical market rent. This stability, combined with the higher rental rate, can lead to improved cash flow and investment returns for property owners.
However, it's important to note that accepting Section 8 vouchers comes with its own set of considerations. Landlords must adhere to HUD standards, which can necessitate additional maintenance and management costs. Moreover, the higher rental rate under the voucher program does not automatically translate into increased profitability if these additional expenses are not accounted for.
To summarize, the gap between the FMR and the market rent in ZIP 42743 presents an opportunity for landlords to enhance their yields by participating in the Section 8 program. Yet, this opportunity must be balanced against the realities of managing voucher-assisted properties in the context of Greensburg, KY's specific economic profile.
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.