Location: Breckinridge County, KY | Metro: Breckinridge County, KY
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 | $690 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,330 |
| 5 Bedrooms | $1,543 |
| 6 Bedrooms | $1,728 |
| 7 Bedrooms | $1,866 |
| 8 Bedrooms | $1,959 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $910 | $101,791 | 0.89% | C |
| 3BR | $1,260 | $166,500 | 0.76% | D |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 40111, Cloverport, KY, set at $870 for metro fiscal year 2026, is the payment standard for landlords participating in the Section 8 Housing Choice Voucher program. This means the government will pay up to $870 per month for a voucher holder's rent, but it does not represent the total rent you can charge. Instead, it caps the amount the voucher covers.
To understand the demand for Section 8 rentals in Cloverport, consider that the average rent there is $402 according to the Census American Community Survey. The 27.5% share of renters in the area indicates a significant portion of the population relies on rental housing, making Section 8 vouchers a valuable option for securing tenants.
The FMR of $870 is notably higher than the local average rent of $402, suggesting that participating in the Section 8 program could offer a more stable income compared to market rates. However, it’s important to note that the actual rent paid by voucher holders is typically lower, as they contribute a portion of their income towards rent. For instance, if a tenant earns 30% of the area median income, they would pay around $231 per month, with the government covering the remaining $639 under the $870 limit.
If you're looking to acquire a property for your first Section 8 rental, be aware that the median home value in Cloverport is approximately $114,358. This figure represents a typical price point for purchasing a home in the area, which could serve as an investment opportunity given the steady demand for affordable housing.
Before proceeding with a Section 8 rental, verify that the property meets all the necessary inspection standards. These include safety, health, and habitability requirements, ensuring it is fit for living and complies with local regulations. This step is crucial to avoid any delays in receiving rental assistance payments.
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.