Location: Nicholas County, KY | Metro: Lexington-Fayette, KY MSA
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 | $800 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,150 | $145,382 | 0.79% | D |
| 3BR | $1,570 | $203,558 | 0.77% | D |
| 4BR | $1,750 | $243,090 | 0.72% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 40311, Carlisle, KY, in Nicholas County, revolve around the SAFMR (Small Area Fair Market Rent) and the local market rent dynamics. For fiscal year 2024, the SAFMR for a two-bedroom apartment in this specific ZIP code is set at $930. This figure represents the maximum amount that the government will pay to cover the rental subsidy for eligible tenants.
In contrast, the local market rent for a two-bedroom unit, based on Census ACS data, is $693. This discrepancy highlights the potential financial benefits for landlords participating in the Section 8 program, especially given the lower market rates.
A landlord should understand that the voucher payment is not simply the full SAFMR amount. It's calculated based on the tenant's portion of the rent plus any utility allowances. Typically, the tenant contributes 30% of their adjusted income toward rent. If we assume an average adjusted income of $1,500 for a tenant, they would contribute approximately $450 toward the rent. This leaves a balance that the government must cover.
The government will then reimburse the landlord the difference between the tenant's contribution and the SAFMR, up to the limit of $930. In this scenario, if the local market rent is $693, the government would cover the remaining amount after the tenant's contribution, which is $543. However, since the SAFMR is higher at $930, the actual reimbursement would be the full $693 minus the tenant's contribution, making it $243.
Note that the SAFMR of $930 is specifically set for ZIP code 40311, meaning it applies only here and not uniformly across the entire county or region. This localized rate helps ensure that the subsidy reflects the actual rental costs in this particular area.
In summary, the typical reimbursement gap for a two-bedroom apartment in ZIP 40311 under the Section 8 program would result in a surplus for the landlord, as the SAFMR exceeds the local market rent. Landlords receive the full market rent of $693, plus the tenant's contribution of $450, totaling $1,143. This amount is above the SAFMR of $930, indicating that landlords might earn slightly more than the SAFMR for a 2BR unit in this ZIP code.
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.