Location: Lexington-Fayette, KY | Metro: Lexington-Fayette, KY MSA
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 | $1,250 |
| 1 Bedroom | $1,530 |
| 2 Bedrooms | $1,800 |
| 3 Bedrooms | $2,480 |
| 4 Bedrooms | $2,680 |
| 5 Bedrooms | $3,109 |
| 6 Bedrooms | $3,482 |
| 7 Bedrooms | $3,761 |
| 8 Bedrooms | $3,949 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,800 | $309,497 | 0.58% | F |
| 3BR | $2,480 | $439,454 | 0.56% | F |
| 4BR | $2,680 | $630,897 | 0.42% | F |
| 5BR | $3,109 | $822,240 | 0.38% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 40513 in Lexington, KY, for fiscal year 2024 is set at $1,520. This figure represents the payment standard for Section 8 housing vouchers, which means that if you decide to participate in the program, you will receive a fixed amount of $1,520 per month from the government to cover the rent for a qualified tenant. It's important to note that this is not the actual rent your tenant will pay; it's the maximum amount the government will contribute towards the rent.
To put this into perspective, the average rent for a two-bedroom apartment in ZIP 40513 is currently $2,298, according to the Zip Oracle Rental Index (ZORI). This indicates that the FMR is significantly lower than the typical market rate, meaning you might have to accept a lower rent than what you could potentially charge to non-Section 8 tenants. However, participating in the program can ensure a steady stream of income, as the government pays a substantial portion of the rent directly.
The renter share, which is 27.1%, suggests that there is a reasonable demand for rental properties in this area. This percentage reflects the proportion of households that are renters, indicating that a significant number of people are looking for places to live, making it a viable market for Section 8 rentals.
If you're considering purchasing a property to use as a Section 8 rental, the median home value of $563,343 gives you an idea of the acquisition cost. This figure can help you estimate the investment required to enter the market, and it's crucial to factor in this cost when assessing the potential profitability of your rental property.
Before you commit to becoming a Section 8 landlord, verify that the property meets all the necessary standards for eligibility. The Housing Quality Standards (HQS) are a set of criteria that must be met to ensure the safety and habitability of the unit. These standards include requirements for heating, plumbing, electrical systems, and overall structural integrity. Ensuring compliance with these standards will save you time and money in the long run, and it's a critical step in preparing your property for the Section 8 program.
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.