Location: Rockcastle County, KY | Metro: Jackson 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 | $650 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,170 |
| 4 Bedrooms | $1,280 |
| 5 Bedrooms | $1,485 |
| 6 Bedrooms | $1,663 |
| 7 Bedrooms | $1,796 |
| 8 Bedrooms | $1,886 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $910 | $120,031 | 0.76% | D |
| 3BR | $1,170 | $185,686 | 0.63% | D |
| 4BR | $1,280 | $237,504 | 0.54% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 40456, Mount Vernon, KY, is set at $870 for the fiscal year 2026. This figure represents the maximum amount that a landlord can receive through the Section 8 Housing Choice Voucher program for a given unit. It's important to note that this is not the rent you'll charge your tenants; rather, it's the reimbursement standard from the government.
In comparison, the average rent in the area, according to recent Census American Community Survey (ACS) data, is $648. This indicates that the FMR is higher than the typical market rate, which could be beneficial for landlords participating in the Section 8 program. The difference between the FMR and the local average rent suggests that you might be able to cover your costs and earn a reasonable profit without charging above-market rates to your tenants.
The 27.7% share of renters in the area points to a steady demand for rental properties. With nearly a third of the population renting, there is a significant pool of potential tenants who may benefit from the Section 8 program. This can help ensure that your property remains occupied, reducing the risk of vacancies.
When considering purchasing a property in ZIP 40456 for a Section 8 rental, the median home value is around $149,989. This gives you an idea of the acquisition cost for a property in this area. Given the FMR and the local average rent, it's possible to acquire a property at this price point and still maintain profitability when participating in the Section 8 program.
Before proceeding with a Section 8 rental, one critical factor to verify is the condition of the property. Section 8 requires that all units meet specific housing quality standards (HQS). Ensure that your property complies with these standards to avoid any delays or complications in getting approved for the program. This includes checking for basic safety features, adequate heating and cooling, and overall cleanliness and maintenance.
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.