Section 8 Fair Market Rent (FMR) for ZIP 40536 - 2027

Location: Lexington-Fayette, KY | Metro: Lexington-Fayette, KY MSA

FY 2027 Fair Market Rent Rates

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

To determine if you should invest in ZIP code 40536 for Section 8 properties, follow this decision tree:

1) Does the Fair Market Rent (FMR) of $1,310 cover your debt service?
- Yes: Proceed to the next question.
- No: This ZIP code is not advisable for Section 8 investments as the FMR does not sufficiently cover the costs of owning a property.
2) How does the market rent compare to the FMR?
- Above FMR: The market rent is higher than the FMR, indicating that Section 8 tenants might not be able to afford the rent. Consider other areas where market rents align more closely with the FMR.
- At FMR: The market rent matches the FMR, making it feasible for Section 8 tenants to afford the rent. Continue to the next question.
- Below FMR: The market rent is lower than the FMR, which means Section 8 tenants can afford the rent. Continue to the next question.
3) Is there sufficient demand in the form of renters and days on the market (DOM)?
- N/A% of renters and N/A-day DOM:
  - High percentage of renters and low DOM: There is strong demand for rental properties in this area, which supports investment in Section 8 properties. Invest with confidence.
  - Moderate percentage of renters and moderate DOM: Demand is present but not overwhelming. Investment in Section 8 properties is viable but requires careful consideration of the specific property and location.
  - Low percentage of renters and high DOM: There is weak demand for rental properties in this area. Investing in Section 8 properties is not recommended unless you can identify unique factors that would attract tenants.

Note: Due to missing specific data points such as the percentage of renters and the average days on the market, precise answers cannot be given for questions 1 and 3. For a complete analysis, ensure you have accurate figures for these metrics.

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.