Location: Laurel County, KY | Metro: Clay 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 | $690 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,160 |
| 4 Bedrooms | $1,350 |
| 5 Bedrooms | $1,566 |
| 6 Bedrooms | $1,754 |
| 7 Bedrooms | $1,894 |
| 8 Bedrooms | $1,989 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $970 | $147,131 | 0.66% | D |
| 3BR | $1,160 | $220,700 | 0.53% | F |
| 4BR | $1,350 | $320,390 | 0.42% | F |
| 5BR | $1,566 | $442,305 | 0.35% | F |
U.S. Census Bureau data (2024)
With a Fair Market Rent (FMR) set at $880 for the fiscal year 2026 in ZIP code 40744 (London, KY), landlords can expect to align their rental prices with the federally established standards to remain competitive. The Census ACS reports a market rent of $825, indicating a slight premium landlords might achieve by adhering to the FMR guidelines. Given the area's median home value of $191,478, properties in this region offer a solid investment opportunity, especially considering the median income stands at $64,369, which supports the affordability of both market rents and FMRs. Renter share in the area is 25.4%, suggesting a moderate demand for rental housing. Despite the lack of available data on days on market (DOM), the low price-cut share of 0.2% implies that rental properties are generally well-priced and attract tenants quickly once listed.
The discrepancy between the FMR and the market rent indicates a potential for landlords to adjust their pricing upwards without significantly deterring tenants. With the median income being relatively stable, the financial health of potential tenants is likely to be sound, reducing the risk of non-payment. Moreover, the fact that there is little need to cut prices to attract tenants (0.2%) suggests a robust rental market where properties are valued appropriately and can command their listed rates.
For landlords and small-portfolio investors looking to tap into the Section 8 program, the figures paint a favorable picture. The FMR of $880 provides a benchmark for setting rental rates that are both attractive to tenants and compliant with federal guidelines. The median home value of $191,478 and the median income of $64,369 indicate a market where the Section 8 voucher program can effectively support renters while ensuring landlords receive fair compensation for their properties.
In conclusion, the data from ZIP 40744 (London, KY) supports a positive outlook for Section 8 participation, offering a balanced scenario where both landlords and tenants can benefit from the program's structure and the local market conditions.
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.