Section 8 Fair Market Rent (FMR) for ZIP 41037 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP 41037, located in Fleming County, Kentucky, are straightforward. For a two-bedroom rental unit, the SAFMR (Small Area Fair Market Rent) is set at $870 per month for fiscal year 2026. This figure is specifically tailored for this ZIP code, reflecting the unique housing cost dynamics of the area.

To understand how this SAFMR translates into actual payments for landlords, it's essential to break down the components of a Section 8 voucher. The voucher system is designed to cover the majority of the rent, but tenants are responsible for paying a portion themselves, typically around 30% of their income. If we assume an average tenant income level, the tenant might contribute approximately $261 towards the monthly rent, based on a 30% contribution rate. This leaves the Section 8 program to cover the remaining balance.

The remaining amount to be covered by the Section 8 program would be calculated as follows: $870 (SAFMR) - $261 (tenant contribution) = $609. However, this calculation does not yet include utility allowances. Utility allowances can vary, but for simplicity, let's consider a standard allowance of about $150 per month. Adding this to the reimbursement, the total payment a landlord could expect from the Section 8 program would be $609 (remaining rent) + $150 (utility allowance) = $759 per month.

This means that for a two-bedroom apartment in ZIP 41037, the landlord would receive a reimbursement of $759 per month from the Section 8 program, assuming the tenant's income and contribution align with our estimates. Given that the SAFMR is $870, there would be a shortfall of $111 per month, which is the difference between the SAFMR and the actual reimbursement received by the landlord.

In conclusion, landlords in ZIP 41037 should anticipate a reimbursement of $759 for a two-bedroom unit under the Section 8 program, resulting in a monthly reimbursement gap of $111. This gap represents the difference between the SAFMR and the actual payment made by the program, and it highlights the economic realities of participating in the Section 8 program in this specific ZIP code.

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.