Section 8 Fair Market Rent (FMR) for ZIP 40955 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 housing in ZIP code 40955, located in Bell County, Kentucky, are governed by the SAFMR (Small Area Fair Market Rent) which is specifically tailored to this area. For fiscal year 2026, the SAFMR for a two-bedroom apartment in ZIP 40955 is set at $870. This figure represents the maximum amount that the Housing Choice Voucher program will pay on behalf of a tenant towards the rent.

To understand how this works for landlords, it's important to break down the components of the voucher payment. The total rent for a two-bedroom unit is capped at $870, but this does not mean that landlords receive this entire amount. Instead, the actual reimbursement depends on the tenant's contribution, which is typically 30% of their adjusted income, plus any additional utility allowances.

If a tenant's portion of the rent is calculated at $200 for instance, then the landlord would receive $200 directly from the tenant and $670 from the Section 8 program, totaling $870. Utility allowances vary and can be up to $200 per month, depending on the household size and local utility costs. These allowances are paid directly to the landlord as part of the monthly subsidy.

The SAFMR being specific to ZIP 40955 means that this rate is uniquely determined based on the rental market conditions within this ZIP code, unlike a metro-wide or county-wide rate which would apply uniformly across a larger area.

Given that the local market rent is currently unavailable, we cannot provide a direct comparison between the SAFMR and the market rates. However, landlords should be aware that if the market rent for a two-bedroom unit exceeds $870, they will have to absorb the difference as the government will only reimburse up to the SAFMR. Conversely, if the market rent is below $870, landlords might receive a surplus, which could be beneficial.

In summary, for a two-bedroom apartment in ZIP 40955, the landlord can expect a reimbursement of $870 per month, with the tenant contributing a portion of the rent and utilities covered under the allowance. The exact reimbursement gap or surplus will depend on the actual market rent for similar units in the area.

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.