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 | $700 |
| 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 |
|---|---|---|---|---|
| 3BR | $1,260 | $247,032 | 0.51% | F |
U.S. Census Bureau data (2024)
In ZIP code 40145, the economics of Section 8 housing involve understanding the difference between the federal payment standard for moderate-sized units, known as the SAFMR, and the actual market rents. For a two-bedroom apartment, the SAFMR for FY 2026 is set at $910. This figure represents the maximum amount that HUD will pay toward the rent for a unit of this size. However, the local market rent, according to the Census ACS data, is significantly lower at $782.
The SAFMR does not directly translate into the total rent a landlord receives. Instead, it is part of a formula that includes the tenant's contribution and utility allowances. Tenants must typically pay 30% of their adjusted income towards rent. If a tenant's income is below a certain threshold, their share can be as low as 10%. Once the tenant's portion is determined, HUD adds an allowance for utilities based on the type of unit and the location. In ZIP 40145, these utility allowances are factored into the overall reimbursement.
To illustrate, if a tenant's income requires them to contribute $235 towards rent, and the utility allowance is $150, then the total reimbursement to the landlord would be the sum of these amounts plus any additional base payment that brings the total up to the SAFMR. Therefore, in this scenario, the landlord would receive $235 from the tenant, $150 for utilities, and the remainder up to the SAFMR of $910 from HUD.
Given the local market rent of $782, the typical reimbursement for a two-bedroom voucher in ZIP 40145 would exceed the market rate, creating a surplus for landlords. This surplus is the difference between the SAFMR and the market rent, which in this case is $128. This means that landlords can expect to receive approximately $128 more per month than they would from a non-voucher tenant paying market rent.
This economic situation benefits landlords by ensuring a steady stream of rental income that is often higher than the prevailing market rates. It also helps stabilize the housing market by providing affordable options for low-income families while maintaining profitability for property owners.
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.