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 | $810 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,140 |
| 4 Bedrooms | $1,320 |
| 5 Bedrooms | $1,531 |
| 6 Bedrooms | $1,715 |
| 7 Bedrooms | $1,852 |
| 8 Bedrooms | $1,945 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $930 | $134,226 | 0.69% | D |
| 3BR | $1,140 | $201,225 | 0.57% | F |
| 4BR | $1,320 | $264,476 | 0.5% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 40419, Crab Orchard, Kentucky, within Lincoln County, can be analyzed using specific financial metrics. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $870. This figure represents the maximum amount that a landlord can charge for rent under the Section 8 program. However, it's important to note that the local market rent, according to Census ACS data, averages around $665.
A Section 8 voucher does not cover the entire rent; instead, it reimburses the landlord for the difference between the tenant's portion and the SAFMR. The tenant is typically responsible for paying 30% of their adjusted income towards rent. For instance, if a tenant's adjusted income is $1,000 per month, they would pay $300 toward rent. The remainder, up to the SAFMR of $870, is covered by the Housing Authority. In this case, the Housing Authority would pay $570.
Additionally, there are utility allowances to consider. These vary but generally provide an extra $200-$300 per month to help cover utilities. If we assume a utility allowance of $250, the total reimbursement a landlord might receive could be up to $820 ($570 for rent plus $250 for utilities).
This means that in ZIP 40419, where the SAFMR is $870, a landlord would have a reimbursement gap of $50 if the tenant's portion and utility allowances add up to $820. This gap must be covered by the landlord unless the tenant's income allows them to contribute more towards rent.
In summary, landlords in ZIP 40419 should expect a reimbursement of up to $870 for a two-bedroom unit, but the actual amount will depend on the tenant's income and the utility allowance. Given the local market rent of $665, landlords may find themselves with a surplus if they set their rent below the SAFMR, or a gap if they set it higher, which they cannot exceed under the program rules.
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.