Location: Lexington-Fayette, KY | Metro: Lexington-Fayette, KY MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,010 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,450 |
| 3 Bedrooms | $2,000 |
| 4 Bedrooms | $2,160 |
| 5 Bedrooms | $2,506 |
| 6 Bedrooms | $2,807 |
| 7 Bedrooms | $3,032 |
| 8 Bedrooms | $3,184 |
The ZIP code 40506 is located in Lexington, KY, and represents a specific area within the city. However, the exact population and demographic details such as the percentage of renters, median income, and median home value are not available for this particular ZIP code. Despite the lack of specific data, the broader context of Lexington provides some insights.
Moving into the rent economics, the Fair Market Rent (FMR) for ZIP 40506 is set at $1210 for fiscal year 2024. This figure is crucial for Section 8 investors as it determines the maximum allowable rent for subsidized units. Without specific data on market rent, it's challenging to provide a direct comparison, but generally, the FMR tends to align closely with the local rental market trends.
Considering the practical investment question, ZIP 40506 fits well for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the stability and demand for affordable housing in Lexington support the viability of Section 8 properties. Meanwhile, for hands-on value-add buyers, the potential to improve property values and rents through strategic renovations and management could yield better returns, especially if the broader Lexington market shows signs of growth.
Data Sources: FMR data from HUD (2027).
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.