Location: Rockcastle County, KY | Metro: Garrard 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 | $660 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $940 | $184,879 | 0.51% | F |
| 3BR | $1,300 | $266,846 | 0.49% | F |
| 4BR | $1,500 | $318,401 | 0.47% | F |
| 5BR | $1,740 | $370,272 | 0.47% | F |
U.S. Census Bureau data (2024)
The ZIP code 40403, located in Berea, Kentucky, is a unique area within Madison County. With a population of 27,607 residents, it has a rental rate of 28.6%, indicating that nearly one-third of the housing units are rented. The median income in this ZIP is $61,771, which is slightly above the national average, and the median home value stands at $252,767, suggesting a relatively stable housing market.
In terms of Section 8 voucher economics, the Fair Market Rent (FMR) for the metro area for fiscal year 2026 is set at $880, while the ZORI (Zillow Rent Index) shows a market rent of $972. This discrepancy means that landlords who accept Section 8 vouchers might face a slight reduction in rental income compared to market rates. However, the gap between the two figures is not excessively large, implying that the economic impact on landlords could be manageable.
The data signature for ZIP 40403 reads as stable. The median income and home values indicate a consistent financial environment where most residents can afford their housing costs. Additionally, the rental rate suggests a balanced mix of homeowners and renters, which can contribute to a steady demand for both types of housing. Landlords and small-portfolio investors should find this ZIP code to be a reliable market, with predictable economic conditions that support long-term investment strategies.
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.