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 | $800 |
| 2 Bedrooms | $970 |
| 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 | $970 | $160,009 | 0.61% | D |
| 3BR | $1,330 | $227,239 | 0.59% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 42784 (Upton, KY) provides insight into potential investment returns for landlords and small-portfolio investors. Using the Federal Market Rent (FMR) for a 2BR unit at $880 per month, the annualized income would be $10,560. Given the median home value of $203,872, this translates to an implied gross yield of approximately 5.2%. This calculation is based on the FMR, which is the maximum rent that can be charged to tenants participating in the Section 8 program.
In contrast, using the market rent figure of $898 per month (as reported by the Census ACS), the annualized income increases to $10,776. With the same median home value, this yields an implied gross return of around 5.3%. The slight increase in yield reflects the higher market rent, suggesting that properties could potentially generate slightly more income if rented at market rates rather than the FMR.
However, it's important to consider the specific characteristics of ZIP 42784 when determining the most realistic scenario. The renter density stands at 29.2%, indicating a moderate demand for rental properties. Additionally, the N/A-day DOM (days on market) suggests that either rental listings are quickly filled or there is limited data available regarding how long properties typically remain vacant before being leased. Given these factors, the FMR-based yield of 5.2% appears more conservative and therefore possibly more realistic, as it accounts for the government-set limits on rent. Nonetheless, if a landlord can secure tenants willing to pay market rates, the 5.3% yield becomes feasible.
To summarize, the gross yield for a 2BR property in Upton, KY, ranges between 5.2% and 5.3%, depending on whether the rent is set at the FMR or the market rate. While both figures provide useful benchmarks, the lower FMR-based yield is likely a more accurate reflection of the income potential for Section 8 properties due to the fixed nature of the rent subsidy. However, market conditions and tenant willingness to pay higher rents can influence the actual outcome.
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.