Location: Washington County, KY | Metro: Boyle 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 | $670 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,140 |
| 4 Bedrooms | $1,360 |
| 5 Bedrooms | $1,578 |
| 6 Bedrooms | $1,767 |
| 7 Bedrooms | $1,908 |
| 8 Bedrooms | $2,003 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,140 | $239,534 | 0.48% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 40328 are straightforward. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) is set at $870 per month for fiscal year 2026. This figure represents the maximum amount that the housing authority will pay to landlords for rental units in this specific ZIP code.
In contrast, the local market rent for a two-bedroom unit is reported to be $684 per month according to Census ACS data. This lower market rent suggests that landlords participating in the Section 8 program may find themselves renting units at rates above the typical market value, which can be beneficial but also comes with specific rules and limitations.
Let's break down the payment structure. A Section 8 voucher typically covers the difference between the tenant's contribution and the SAFMR. The tenant's portion is generally 30% of their income, which must fall below certain thresholds to qualify for the program. Additionally, there are utility allowances that vary depending on the region and type of unit. In ZIP 40328, the utility allowance for a two-bedroom unit would be included in the total reimbursement calculation.
To illustrate, if a tenant's income is $2,000 per month, their contribution towards rent would be approximately $600 (30% of $2,000). Assuming the utility allowance is around $150, the total reimbursement from the housing authority would be $870. Therefore, the housing authority would cover the remaining $270 ($870 - $600).
This means that for a two-bedroom unit rented at the SAFMR of $870, the landlord receives the full amount. However, if the local market rent is $684, the landlord would receive the $684 plus the tenant's contribution and utility allowance, totaling $834. This results in a $36 shortfall compared to the SAFMR.
In summary, landlords in ZIP 40328 can expect a reimbursement gap of $36 when renting a two-bedroom unit at the local market rate. This gap must be considered when deciding whether to participate in the Section 8 program, as it affects the overall profitability of the rental property.
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.