Location: Lexington-Fayette, 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 | $950 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,360 |
| 3 Bedrooms | $1,870 |
| 4 Bedrooms | $2,020 |
| 5 Bedrooms | $2,343 |
| 6 Bedrooms | $2,624 |
| 7 Bedrooms | $2,834 |
| 8 Bedrooms | $2,976 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,360 | $231,181 | 0.59% | F |
| 3BR | $1,870 | $319,094 | 0.59% | F |
| 4BR | $2,020 | $465,491 | 0.43% | F |
| 5BR | $2,343 | $605,665 | 0.39% | F |
U.S. Census Bureau data (2024)
The ZIP code 40383, located in Versailles, KY, has a population of 24,793, with 28.1% of residents being renters. This indicates that while there is a significant rental market, it is not overwhelmingly dominated by renters. The median household income stands at $85,213, which provides a benchmark for assessing the affordability of housing.
The market rent in this area is $1,890, representing approximately 22.2% of the median household income. This figure suggests that rent is a substantial portion of the average resident's earnings, but still manageable for many households. For comparison, the Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,050, indicating that market rents are significantly higher than the government's fair market assessment.
In terms of voucher demand, the percentage of renters and the disparity between market rent and FMR suggest that while there may be some tenants using vouchers, the overall demand for deeply subsidized housing is likely not as high as in areas with lower incomes or higher percentages of renters. Landlords in ZIP 40383 should anticipate a mix of tenants, including those who can afford market rates and some who might be seeking assistance through vouchers or other financial aid programs.
To conclude, landlords in Versailles, KY, should prepare for a diverse tenant pool. While the area has a notable rental market, it is not characterized by deep voucher demand. Tenants will largely be individuals and families capable of paying the market rent of $1,890, though a segment may require support from vouchers or similar subsidies due to the high cost of living relative to the FMR. Given the median income, expect tenants who can manage a significant share of their earnings towards rent, but who also value affordability and may seek out properties priced closer to the FMR.
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.