Location: Hart County, KY | Metro: Elizabethtown, 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 | $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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $960 | $179,033 | 0.54% | F |
| 3BR | $1,330 | $234,577 | 0.57% | F |
U.S. Census Bureau data (2024)
The ZIP code 42757, located in Magnolia, KY, represents a modest-sized community with a population of 2,547 residents. Within this area, 19.3% of the population are renters, indicating that it is not heavily dominated by rental properties. The median household income stands at $52,467, which is a key figure when assessing the potential demand for Section 8 vouchers.
The typical market rent in this ZIP is $603, representing a significant portion of the average income. Specifically, the rent consumes approximately 11.5% of the median household income. This percentage is calculated by dividing the rent by the median income and multiplying by 100: ($603 / $52,467) * 100 = 11.49%. This suggests that while the rent is affordable relative to income, it still poses a substantial financial burden on tenants.
In comparison to the Fair Market Rent (FMR) of $940 for FY 2024, the current market rent of $603 is notably lower. This discrepancy indicates that the area is more affordable than the broader region's average, potentially making it attractive for voucher holders who might find it easier to secure housing within their budget constraints.
A landlord in ZIP 42757 can expect a tenant pool that includes a mix of individuals who are likely to be reliant on government assistance due to the income levels being relatively low. These tenants will be seeking affordable housing options and may frequently use Section 8 vouchers to cover their rent. Given the relatively high cost of rent compared to income, landlords should prepare to work with tenants who have limited discretionary spending beyond basic living expenses.
While the voucher demand is present, it may not be as deep as in areas with higher percentages of renters. However, the affordability of the market rent relative to the FMR makes it a viable option for those receiving housing subsidies. Landlords should ensure they understand the requirements and regulations associated with accepting Section 8 tenants to effectively manage their properties.
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.