Section 8 Fair Market Rent (FMR) for ZIP 40409 - 2027

Location: Rockcastle County, KY | Metro: Lincoln County, KY

Investment Score for ZIP 40409

D
Monthly Rent (2BR)
$1,010
Median Price (2BR)
$127,698
1% Rule
0.79%
Annual Yield
9.49%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$720
1 Bedroom$900
2 Bedrooms$1,010
3 Bedrooms$1,300
4 Bedrooms$1,410
5 Bedrooms$1,636
6 Bedrooms$1,832
7 Bedrooms$1,979
8 Bedrooms$2,078

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $1,010 $127,698 0.79% D
3BR $1,300 $186,805 0.7% D
4BR $1,410 $224,322 0.63% D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
3,445
Median Household Income
$52,619
Housing Units
1,620
Renter Percentage
32.2%
Occupancy Rate
86.5%
Renter Occupied
451

The Fair Market Rent (FMR) for ZIP code 40409, Brodhead, KY, is set at $960 for the metro area fiscal year 2026. This figure represents the payment standard for landlords participating in the Section 8 Housing Choice Voucher program, meaning it's the maximum amount a voucher holder can pay towards rent. It's important to note that this is not your tenant's rent; rather, it's the benchmark used to determine the rent subsidy.

To put this into perspective, the average rent in Brodhead, KY, according to the latest Census American Community Survey (ACS), is $757. This indicates that the Section 8 payment standard is higher than the typical market rate, which can be beneficial for landlords as it helps cover costs that might otherwise exceed the local rent average.

The demand for rentals in Brodhead, KY, is strong, with 32.2% of residents being renters. This suggests that there is a significant portion of the population who would be interested in renting properties through the Section 8 program, ensuring a steady stream of potential tenants.

If you're considering purchasing a property for your first Section 8 rental, the median home value in Brodhead, KY, stands at $158,105. This figure can help guide your investment decisions, allowing you to estimate the cost of acquiring a suitable property for the program.

Before you decide to participate in the Section 8 program, verify that the property meets all the required standards for habitability and safety. The housing authority will conduct an inspection to ensure the unit is up to code, so confirming these details beforehand can prevent delays and ensure a smooth process.

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.