Location: Mercer County, KY | Metro: Mercer County, KY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $740 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP 40310 operate under specific guidelines that affect both landlords and tenants. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) is set at $950 per month for fiscal year 2026. This figure is nearly identical to the local market rent, which stands at $957 according to the Census ACS data.
A Section 8 voucher does not cover the entire rent amount; rather, it reimburses the landlord for a portion of the rent after accounting for the tenant's contribution and utility allowances. The tenant is typically responsible for paying 30% of their adjusted income toward rent. The remaining amount is covered by the voucher, up to the SAFMR limit of $950.
If we consider an example where a tenant's adjusted income is $1,000 per month, they would pay $300 toward rent. The voucher would then cover the difference between the rent and the tenant's payment, but not exceeding the SAFMR of $950. In this case, if the landlord charges $957, the voucher would reimburse $650 ($957 - $300), leaving the landlord with a reimbursement of $650 plus the tenant's $300 payment, totaling $950. The landlord would still have a shortfall of $7 ($957 - $950).
Utility allowances vary based on the household size and can range from $10 to $100 per month. These allowances do not increase the overall reimbursement rate beyond the SAFMR limit but are paid directly to the landlord on top of the rent reimbursement. Therefore, if the landlord includes utilities in the rent, they must ensure that the total rent plus utilities does not exceed the SAFMR limit to avoid reducing the reimbursement further.
In ZIP 40310, landlords will find that the typical reimbursement gap for a two-bedroom apartment is $7. This means that while the local market rent is slightly higher than the SAFMR, landlords can expect a minor surplus when considering the utility allowances. However, this surplus is not guaranteed and depends on the individual circumstances of each tenant and their adjusted income.
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.