Section 8 Fair Market Rent (FMR) for ZIP 40949 - 2027

Location: Knox County, KY | Metro: Knox County, KY

Investment Score for ZIP 40949

N/A

Monthly Rent (2BR)

$910

Median Price (2BR)

$N/A

1% Rule

Annual Yield

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$650
1 Bedroom	$840
2 Bedrooms	$910
3 Bedrooms	$1,180
4 Bedrooms	$1,520
5 Bedrooms	$1,763
6 Bedrooms	$1,975
7 Bedrooms	$2,133
8 Bedrooms	$2,240

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$1,180	$168,529	0.7%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

468

Median Household Income

$54,688

Housing Units

175

Renter Percentage

20.0%

Occupancy Rate

100.0%

Renter Occupied

The ZIP code 40949, located in the heart of Kentucky's Bluegrass region, offers a unique blend of rural charm and metropolitan accessibility, making it an intriguing market for real estate investors. This area is characterized by its modest home values and a significant portion of renters, which suggests potential opportunities for those looking to enter the rental market.

The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $870, indicating a stable rental price that could provide consistent income for landlords.
While specific market rent figures are not available, the median home value stands at $151,029, offering a relatively low barrier to entry for property acquisition.
Renters make up 20.0% of the local housing market, suggesting a demand for affordable rental properties in the area.
The median income of $54,688 provides insight into the financial capacity of residents, who may be seeking cost-effective housing solutions.
The lack of a defined day DOM (Days on Market) statistic means that property turnover rates can vary, but given the area's characteristics, quick sales or rentals are possible with the right pricing strategy.
The combination of these factors points towards a balanced market where investment in rental properties can yield positive returns, especially considering the stability of the FMR and the affordability of median home values.

Investors in ZIP 40949 should focus on properties that align with the fair market rent of $870, leveraging the 20.0% renter share to secure steady tenants. With a median home value of $151,029, the initial capital outlay is manageable, and the median income of $54,688 supports the viability of the rental market. Although specific market rent and day DOM figures are unavailable, the overall economic indicators suggest a favorable environment for those willing to invest in this region.

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.