Location: Bell County, KY | Metro: Bell County, KY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $630 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,130 |
| 4 Bedrooms | $1,350 |
| 5 Bedrooms | $1,566 |
| 6 Bedrooms | $1,754 |
| 7 Bedrooms | $1,894 |
| 8 Bedrooms | $1,989 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 40856 are straightforward. The SAFMR (Standard Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $880 per month for fiscal year 2026. This figure represents the maximum amount that the Housing Choice Voucher Program will pay towards a tenant's rent. However, the local market rent for a similar unit is not available, which means we must rely on the SAFMR as our benchmark.
Landlords often wonder about the actual payment they receive when a tenant uses a voucher. Here’s how it works: the voucher covers the difference between the tenant’s contribution and the total rent. The tenant is required to contribute 30% of their adjusted income toward the rent. For instance, if a tenant's monthly income is $1,000, their contribution would be $300. The remaining balance, up to the SAFMR limit, is then paid by the program. In the case of a $880 SAFMR, the landlord would receive $580 from the voucher program, making the total $880.
Utility allowances are also factored into the equation but do not directly affect the rent reimbursement. These allowances are separate payments made to the tenant to cover utilities such as electricity, gas, water, and sewerage. The exact amount of these allowances varies based on the household size and local utility costs. Therefore, landlords should ensure their advertised rent does not exceed the SAFMR to maximize their chances of securing tenants with vouchers.
In ZIP 40856, landlords can expect a reimbursement gap or surplus depending on whether the market rent exceeds or falls below the SAFMR. Given the SAFMR is $880 and the local market rent is currently unknown, landlords must price their properties competitively to attract voucher holders. If the market rent is higher than $880, landlords will face a gap, meaning they won't receive the full market rent. Conversely, if the market rent is lower, landlords might see a surplus, receiving more than the local market rate.
To summarize, landlords in ZIP 40856 should understand that the Section 8 voucher program will reimburse them up to $880 for a two-bedroom unit, with the tenant contributing 30% of their income. Landlords must adjust their rental pricing accordingly to either fill units or manage the financial impact of the reimbursement structure.
Data Sources: FMR data from HUD (2027). 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.