Section 8 Fair Market Rent (FMR) for ZIP 42765 - 2027

Location: Hart County, KY | Metro: Hart County, KY

Investment Score for ZIP 42765

Monthly Rent (2BR)

$910

Median Price (2BR)

$150,037

1% Rule

0.61%

Annual Yield

7.28%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$650
1 Bedroom	$800
2 Bedrooms	$910
3 Bedrooms	$1,130
4 Bedrooms	$1,260
5 Bedrooms	$1,462
6 Bedrooms	$1,637
7 Bedrooms	$1,768
8 Bedrooms	$1,856

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$910	$150,037	0.61%	D
3BR	$1,130	$218,175	0.52%	F
4BR	$1,260	$305,115	0.41%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

7,149

Median Household Income

$59,688

Housing Units

2,778

Renter Percentage

33.9%

Occupancy Rate

93.2%

Renter Occupied

878

Munfordville, KY, located in the heart of Kentucky's beautiful countryside, offers a unique blend of rural charm and accessibility to urban amenities. This area is particularly interesting for real estate investors due to its stable rental market and manageable property values, which can provide a solid return on investment.

The Fair Market Rent (FMR) for Munfordville, KY, for the fiscal year 2026 is set at $870, indicating the maximum amount HUD will pay for a unit in the area.
The average market rent, as per the Census American Community Survey (ACS), stands at $707, suggesting that rents are currently below the FMR and have room to grow.
The median home value in Munfordville is $198,816, which is relatively low compared to many metropolitan areas, making it an attractive option for first-time buyers and investors alike.
Renters make up 33.9% of the housing market, showing a significant demand for rental properties that landlords can capitalize on.
The median income in the area is $59,688, providing insight into the financial capacity of potential tenants and homeowners.

Given these data points, Munfordville presents a favorable environment for small-portfolio investors looking to enter the rental market. The gap between the market rent and the FMR suggests potential for increasing rental rates over time. Additionally, the moderate median home value and substantial renter share indicate a healthy balance between affordability and demand, while the median income provides assurance regarding the ability of residents to meet their housing costs. These factors collectively contribute to a stable and promising investment climate.

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.