Location: Grayson County, KY | Metro: Bowling Green, 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 | $810 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,040 | $184,380 | 0.56% | F |
| 3BR | $1,250 | $231,454 | 0.54% | F |
| 4BR | $1,630 | $328,738 | 0.5% | F |
U.S. Census Bureau data (2024)
Investing in Section 8 properties in ZIP 42754 in Leitchfield, KY, presents several potential challenges that landlords must be prepared to face. One significant issue is tenant turnover. The market rent in this area is $653, which is notably lower than the Fair Market Rent (FMR) of $850 for FY 2024. This disparity suggests that tenants may move out when they find better rental options, leading to higher turnover rates.
Vacancy exposure is another concern. While the typical days on market (DOM) for homes in this ZIP code is not available, the fact that the market rent is significantly below the FMR indicates a possible vulnerability to vacancies. Landlords should be ready to manage periods of vacancy and the associated loss of income.
Deferred maintenance is also a risk factor. With a typical home value of $167,708 and a median income of $48,737, there may be limited financial resources available for timely repairs and maintenance. This could lead to more extensive and costly repairs down the line if issues are not addressed promptly.
However, these risks are somewhat mitigated by the high renter share in the area, which stands at 29.1%. High renter density usually translates into greater demand for rental properties, including those that accept Section 8 vouchers. This increased demand can help stabilize occupancy rates and reduce the likelihood of prolonged vacancies.
The verdict for a first-time Section 8 landlord in ZIP 42754 is moderate risk. While there are significant challenges, the high renter share provides a buffer against some of the risks associated with tenant turnover and vacancy exposure.
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.