Location: Breckinridge County, KY | Metro: Meade County, KY HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 40161 are defined by the SAFMR (Small Area Fair Market Rent) rates established by HUD (Department of Housing and Urban Development). For a two-bedroom apartment in this ZIP code during fiscal year 2024, the SAFMR is set at $1040. This figure represents the maximum amount that a Section 8 voucher will cover for rental payments. It's important to note that the SAFMR is specific to this ZIP code, reflecting local housing costs.
To understand how much a landlord can expect to receive from a voucher, it's necessary to factor in both the tenant's portion of the rent and any utility allowances. Typically, tenants contribute 30% of their adjusted income towards rent. If we assume an average adjusted income of $1733 per month, which is based on the federal poverty guidelines, the tenant would pay approximately $520 towards rent ($1733 * 0.3).
This leaves a balance of $520 to be covered by the voucher. However, the actual reimbursement can be slightly less due to utility allowances. HUD provides an additional allowance for utilities, which varies but is generally around $100-$150 per month for a two-bedroom unit. This means that if the utility allowance is $150, the total reimbursement from the voucher would be $670 ($520 + $150).
In ZIP 40161, where the SAFMR is $1040, landlords would see a reimbursement gap of $370 per month. This gap must be filled by the tenant, making it crucial for landlords to ensure that potential tenants have sufficient income to cover this difference. If the local market rent were higher than the SAFMR, landlords might consider adjusting their rental prices to attract voucher holders while still maximizing profitability.
In summary, landlords in ZIP 40161 should expect a Section 8 voucher to cover up to $670 of the $1040 SAFMR, leaving a reimbursement gap of $370. This gap needs to be covered by the tenant's contribution, highlighting the importance of thorough tenant screening to ensure financial stability.
Data Sources: FMR data from HUD (2027). 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.