Location: Metcalfe County, KY | Metro: Barren County, KY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
U.S. Census Bureau data (2024)
The Section 8 real estate analysis for ZIP code 42749, centered around Horse Cave, KY, reveals a significant financial opportunity for landlords and small-portfolio investors. The Fair Market Rent (FMR) for the area, set at $950 per month for fiscal year 2026, stands notably higher than the current market rent, which is reported at $726 based on Census ACS data. This creates a gap of $224, or approximately 30.8%, between what voucher tenants can pay and the prevailing open-market rental rates.
In this scenario, where the FMR exceeds the market rent, properties in ZIP 42749 become attractive yield plays for investors. Voucher tenants, backed by government subsidies, ensure a steady and reliable income stream that aligns with the higher FMR benchmark. For instance, a landlord renting out a property at the market rate of $726 would receive an additional $224 from the government subsidy, bringing the total monthly rent to $950. This not only stabilizes cash flow but also potentially increases profitability compared to non-subsidized tenants who might be less willing or able to pay higher rents.
Horse Cave, KY, has a rental population of 34.4% and a median home value of $170,649. With a median income of $45,500, many residents may find it challenging to afford market-rate housing without assistance. Therefore, participating in the Section 8 program allows landlords to tap into a pool of qualified tenants who can afford the higher subsidized rents, ensuring a stable occupancy rate and consistent returns.
However, it's important to note that accepting Section 8 tenants comes with its own set of responsibilities. Landlords must adhere to housing quality standards and undergo regular inspections. Additionally, the process of becoming a Section 8 landlord involves navigating federal guidelines and possibly dealing with bureaucratic delays. Despite these challenges, the financial benefits of closing the $224 gap between FMR and market rent make this a compelling strategy for maximizing yields in ZIP 42749.
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.