Location: Laurel County, KY | Metro: Knox 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 | $680 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,190 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,190 | $172,073 | 0.69% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP 40734 are straightforward. The SAFMR (Standard Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $910. However, the local market rent, according to the Census ACS, averages $697. This discrepancy is important to understand when considering how much a landlord will receive from a voucher.
A Section 8 voucher covers most of the rent, but not all. The tenant is responsible for paying 30% of their adjusted income towards rent. In addition, there are utility allowances which can vary based on the size of the unit and other factors. For a two-bedroom apartment in ZIP 40734, the total reimbursement a landlord receives is calculated as follows:
To illustrate, if a tenant has an adjusted income of $1,000, they would pay $300 toward the rent. The voucher would then cover the remaining $610 of the $910 SAFMR. If the utility allowance is $250, the total reimbursement a landlord would receive is $860 ($610 + $250).
This amount is compared against the actual market rent of $697. Therefore, in ZIP 40734, a landlord participating in the Section 8 program for a two-bedroom unit would see a surplus of $163 per month. This surplus is the difference between the total reimbursement received from the voucher and the local market rent.
In summary, landlords in ZIP 40734 who participate in the Section 8 program for a two-bedroom apartment will receive a higher reimbursement than the local market rent, resulting in a surplus of $163 per month. This economic advantage can be a significant factor in deciding whether to accept Section 8 tenants.
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.