Section 8 Fair Market Rent (FMR) for ZIP 40468 - 2027
Location: Washington County, KY | Metro: Boyle County, KY
Investment Score for ZIP 40468
D
Monthly Rent (2BR)
$1,110
Median Price (2BR)
$173,956
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 | $860 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
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 |
$1,110 |
$173,956 |
0.64% |
D |
| 3BR |
$1,420 |
$226,532 |
0.63% |
D |
| 4BR |
$1,460 |
$274,207 |
0.53% |
F |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$64,081
To determine if you should buy in ZIP 40468 (Perryville, KY) for Section 8 investment, follow these steps:
- Step 1: Does the Fair Market Rent (FMR) of $1,050 cover the debt service on a $226,735 property?
- Yes. The FMR of $1,050 is sufficient to clear debt service on a property valued at $226,735. This means that the rental income can support the mortgage payments and other costs associated with owning the property.
- Step 2: Is the market rent of $1,014 above, at, or below the FMR?
- Below. The market rent of $1,014 is lower than the FMR of $1,050. This indicates that the typical rental price in the area is slightly less than what Section 8 tenants could pay, suggesting a potential opportunity to earn slightly above market rates with Section 8 vouchers.
- Step 3: Are 19.6% renters plus an unknown number of days on the market (DOM) indicative of enough demand?
- It Depends. With 19.6% of the population being renters, there is a notable demand for rental properties. However, the lack of data on days on the market (DOM) makes it difficult to assess how quickly properties are rented out. If the DOM is low, indicating fast turnover, this would be a positive sign for demand. Conversely, a high DOM might suggest slower demand or longer vacancy periods.
In conclusion, based on the given data, ZIP 40468 presents a viable option for Section 8 investment due to the FMR covering debt service and potentially offering higher rents than the market average. However, the decision ultimately hinges on the specific dynamics of rental demand, which require further investigation into the DOM to provide a clearer assessment.
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.