Location: Leslie 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 | $660 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,310 |
| 5 Bedrooms | $1,520 |
| 6 Bedrooms | $1,702 |
| 7 Bedrooms | $1,838 |
| 8 Bedrooms | $1,930 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,270 | $127,925 | 0.99% | C |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 40962 are governed by specific financial mechanisms that ensure affordability for tenants while providing a stable income stream for landlords. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) is set at $890 per month for fiscal year 2026. This figure represents the maximum amount that the housing authority will pay towards a tenant's rent under the Section 8 program.
In contrast, the local market rent for a two-bedroom unit in ZIP 40962 is recorded at $699 per month according to the Census ACS data. This discrepancy highlights the subsidized nature of Section 8 housing, where the government aims to bridge the gap between what tenants can afford and the cost of living in the area.
A landlord should understand that the total rent received from a Section 8 voucher does not come solely from the housing authority. Tenants are required to contribute a portion of their income towards the rent. Typically, this contribution is 30% of the household's adjusted monthly income. Additionally, there are utility allowances that vary based on the number of bedrooms and the location. For ZIP 40962, these allowances are included in the $890 SAFMR but are separate from the rent payment.
To illustrate, if a tenant's portion of the rent is $200 and the utility allowance is $100, the total reimbursement a landlord receives would be the sum of the tenant's contribution and the housing authority's subsidy. In this case, it would be $200 (tenant portion) + $790 (housing authority subsidy, calculated as $890 - $100 utility allowance), totaling $990 per month.
However, since the local market rent is lower at $699, a landlord would effectively receive a surplus when renting to a Section 8 tenant. The surplus is the difference between the total reimbursement and the market rent, which in this scenario amounts to $990 - $699 = $291 per month. This extra amount can be seen as a buffer for landlords, ensuring they do not suffer financial losses due to the subsidized rent rates.
Note that the SAFMR is specifically set for this ZIP code, reflecting the unique cost of living factors present in ZIP 40962. Landlords should also be aware that the actual tenant contribution can vary widely depending on the individual tenant's income, potentially affecting the overall surplus or gap.
In summary, for a two-bedroom rental property in ZIP 40962, the typical reimbursement gap or surplus leans towards a surplus, benefiting landlords by approximately $291 per month over the local market rent. This calculation assumes standard utility allowances and a fixed tenant contribution based on the SAFMR of $890.
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.