Section 8 Fair Market Rent (FMR) for ZIP 41124 - 2027

Location: Lawrence County, KY | Metro: Lawrence County, KY HUD Metro FMR Area

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$830
1 Bedroom	$840
2 Bedrooms	$1,020
3 Bedrooms	$1,220
4 Bedrooms	$1,440
5 Bedrooms	$1,670
6 Bedrooms	$1,870
7 Bedrooms	$2,020
8 Bedrooms	$2,121

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

1,131

Median Household Income

$55,139

Housing Units

474

Renter Percentage

23.5%

Occupancy Rate

88.8%

Renter Occupied

When considering whether to invest in ZIP code 41124 for Section 8 properties, follow this decision tree:

Does the Fair Market Rent (FMR) of $870 clear debt service on a property?
- If the answer is yes, proceed to the next question.
- If the answer is no, do not purchase in this area as the FMR does not cover your financial obligations.
Is the market rent of $761 above, at, or below the FMR?
- If the market rent is above the FMR, it indicates strong demand that could potentially support higher rents, but you must ensure the FMR still covers your costs.
- If the market rent is at or below the FMR, you face a challenging scenario where rents might not be sufficient to cover expenses or provide a profit margin.
Are 23.5% of residents renters and is the days on market (DOM) sufficient to meet demand?
- If 23.5% of residents are renters and the DOM is low, indicating quick turnover, there is likely enough demand to justify investment.
- If the percentage of renters is lower or the DOM is high, the market may not sustain the number of units needed for a viable Section 8 portfolio.

Yes: If the FMR clears your debt service, the market rent is above the FMR, and the rental demand is strong with a low DOM, then purchasing in ZIP 41124 would be advisable. The FMR being higher than the market rent suggests potential for rental income that exceeds the average, which can be beneficial when managing a Section 8 property.

No: If the FMR does not clear your debt service or the market rent is below the FMR, investing in this ZIP code is not recommended. In these scenarios, the financial viability of the property is compromised, leading to potential losses.

It Depends: If the FMR just barely clears the debt service or if the market rent is close to the FMR, your decision will hinge on the local rental dynamics. A detailed analysis of the rental market, including trends and competition, is necessary. Additionally, consider the percentage of renters and DOM to gauge overall demand. With 23.5% of residents as renters, there is a notable segment of the population that relies on rental housing, but the DOM will indicate how quickly you can expect to fill vacancies.

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.