Location: Harlan County, KY | Metro: Harlan County, KY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,190 |
| 4 Bedrooms | $1,190 |
| 5 Bedrooms | $1,380 |
| 6 Bedrooms | $1,546 |
| 7 Bedrooms | $1,670 |
| 8 Bedrooms | $1,754 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP 40964 are straightforward. For a two-bedroom apartment, the SAFMR (Standard Area Fair Market Rent) is set at $870 per month for fiscal year 2026. This figure is specific to this ZIP code and does not vary based on broader metro or county-level averages.
Local market rents for a two-bedroom unit in ZIP 40964 are currently unavailable, which can make direct comparisons challenging. However, it's important to understand that the SAFMR sets the maximum amount that the housing authority will pay for rental assistance. If the local market rent exceeds this amount, landlords must rely on the tenant to cover the difference, which is often difficult given the financial constraints of those eligible for Section 8.
A Section 8 voucher works by covering a portion of the rent after the tenant has paid their share. Typically, the tenant pays 30% of their adjusted income toward the rent, while the housing authority pays the remainder up to the SAFMR limit. In addition to the base rent, there are utility allowances which can vary but are generally included in the overall payment structure.
To illustrate, if a tenant's monthly adjusted income is $1,000, they would be expected to contribute $300 toward the rent. The housing authority would then cover the rest of the rent, up to the $870 SAFMR. This means that for a two-bedroom apartment priced at $870, the housing authority would pay $570, and the tenant would pay $300. If the rent is higher than $870, the landlord must accept the $870 as the maximum reimbursement, with the tenant responsible for any additional amount.
In ZIP 40964, the typical reimbursement gap or surplus for a two-bedroom voucher is directly tied to the actual rent charged. If the rent is exactly $870, there is no surplus or gap. If the rent is lower, say $750, the housing authority would still pay $570, leaving the landlord with an extra $180 per month. Conversely, if the rent is higher, such as $1,000, the landlord would face a $130 shortfall each month, which the tenant would need to cover beyond their $300 contribution.
Landlords should be aware that while the SAFMR provides a benchmark for rent, the actual reimbursement can vary depending on the tenant's income and the specific terms of their voucher. It is crucial to verify the details of each voucher and ensure that the rent charged aligns with the SAFMR to avoid financial discrepancies.
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.