Section 8 Fair Market Rent (FMR) for ZIP 42764 - 2027
Location: Green County, KY | Metro: Elizabethtown, KY HUD Metro FMR Area
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $760 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$73,929
To determine if you should buy in ZIP code 42764 for Section 8 purposes, follow these steps:
- Step 1: Can the Fair Market Rent (FMR) of $930 cover the debt service on a property priced at $199,509?
- Yes: The FMR of $930 is designed to ensure that landlords can cover their costs, including mortgage payments, taxes, insurance, and maintenance. However, you must verify that this amount indeed covers your specific debt service requirements.
- No: If the FMR does not cover your debt service, then purchasing a property in this ZIP code for Section 8 is not advisable. You need to find properties where the FMR can support the financial obligations.
- Step 2: How does the market rent compare to the FMR?
- Above FMR: If the market rent exceeds the FMR, it suggests that there's a higher potential for profit outside of Section 8. However, you'll still be limited to the FMR when renting to Section 8 tenants.
- At FMR: This indicates that the market rent aligns closely with the FMR, making Section 8 tenancy a viable option without significant loss of potential rental income.
- Below FMR: If the market rent is below the FMR, Section 8 tenancy could offer better returns than typical market rentals, but you must consider if the lower market rents reflect broader economic conditions that could impact long-term profitability.
- Step 3: Is the demand sufficient given the percentage of renters and days on the market (DOM)?
- Yes: With 9.7% of residents being renters and the DOM being N/A (indicating either insufficient data or very quick turnover), the demand for rental properties seems strong. This makes it likely that you can fill vacancies promptly.
- No: If the DOM were high, indicating slow turnover, this would suggest that demand might not be robust enough to support quick leasing of your property.
- It Depends: Given the N/A status for DOM, you should investigate further to understand the local rental market dynamics. Quick turnovers can be indicative of strong demand, but the lack of specific DOM data requires additional research to confirm.
Based on the analysis above, if the FMR of $930 covers your debt service, the market rent is at least equal to the FMR, and the demand for rental properties is strong (as indicated by the quick turnovers), then the answer is yes: you should consider buying in ZIP code 42764 for Section 8 investments. Otherwise, the decision hinges on whether these criteria are met, leading to an it depends outcome. Always perform thorough due diligence on the specific property and neighborhood before making any investment decisions.
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.