Section 8 Fair Market Rent (FMR) for ZIP 40057 - 2027

Investment Score for ZIP 40057

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

Investment Analysis by Bedroom Size

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

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

To decide whether to buy in ZIP 40057 (Pleasureville, KY) for Section 8 investments, follow these steps:

Step 1: Does the Fair Market Rent (FMR) of $1220 cover debt service on a $248,665 property?

• Yes: The FMR of $1220 is sufficient to cover the debt service if the annual debt service is less than $14,640 ($1220 x 12 months).
• No: If the annual debt service exceeds $14,640, then the FMR will not cover the costs, making the investment unprofitable under Section 8.
• It Depends: This scenario would apply if the landlord has additional sources of income or subsidies that could help cover any shortfall between the FMR and the debt service.

Step 2: Compare the market rent of $1,171 (from Census ACS) to the FMR of $1220.

• Market Rent Below FMR: At $1,171, the market rent is below the FMR, indicating that Section 8 properties could be more attractive to tenants. Landlords should consider this when setting rents.
• Market Rent Equal to FMR: If the market rent were to rise to match the FMR, there would be parity, and landlords would face typical market conditions without significant advantages or disadvantages.
• Market Rent Above FMR: This condition does not apply based on the given data. However, if it did, it would suggest that non-Section 8 units might be more profitable, but still accessible to those with vouchers.

Step 3: Evaluate rental demand using the 21.4% renters and N/A-day days on market (DOM).

• Yes: With 21.4% of residents being renters and no specific data on DOM, it suggests a steady demand for rental properties. Given the lack of DOM data, assume a reasonable turnover rate exists, supporting the viability of Section 8 properties.
• No: If the percentage of renters were significantly lower, or if DOM was high, indicating difficulty in finding tenants, then demand would not support the purchase of a Section 8 property.
• It Depends: Without precise DOM data, the decision hinges on local economic factors and the landlord's ability to manage a property effectively. A 21.4% rental rate is moderate and requires consideration of other local economic indicators.

Based on the analysis, the key decision points are whether the FMR covers your debt service, how market rent compares to FMR, and the level of rental demand. For ZIP 40057, the FMR slightly exceeds the market rent, suggesting a favorable environment for Section 8 properties, especially if the debt service is manageable. Rental demand is moderate, which supports the investment but may require careful management.

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.