Section 8 Fair Market Rent (FMR) for ZIP 41173 - 2027

FY 2027 Fair Market Rent Rates

The Fair Market Rent (FMR) for ZIP code 41173 in Kentucky for fiscal year 2024 is set at $850. This figure represents the maximum amount that the U.S. Department of Housing and Urban Development (HUD) will pay towards rent for a unit under the Section 8 program. It's important to note that this is not the rent you should charge your tenants; it's the benchmark for HUD payments.

While specific local rent figures are not available, the FMR can be used as a guide for setting your own rental rates. Landlords often set their rent slightly above the FMR to account for the difference between the tenant's portion and the total rent charged. For example, if you set the rent at $900, the tenant might need to pay $50 out of pocket, with HUD covering the remaining $850.

The percentage of renters in the area who could qualify for Section 8 assistance is also not specified here. However, understanding the local demand for affordable housing is crucial. If the percentage of potential Section 8 tenants is high, it suggests a strong demand for properties that accept Section 8 vouchers.

In terms of property acquisition, the cost of purchasing a property in ZIP 41173 is not detailed. Nonetheless, knowing the typical price range of properties in the area can help you assess whether a Section 8 rental will be financially viable. Typically, you would want to ensure that the FMR covers most of your mortgage and maintenance costs, leaving you with a modest profit.

Before proceeding with your first Section 8 rental, verify that your property meets all the required standards for the program. This includes passing a thorough inspection to ensure it complies with health and safety regulations. Failure to meet these standards can result in penalties and loss of rental income.

By adhering to the guidelines and understanding the local market, you can make an informed decision about accepting Section 8 tenants. The $850 FMR provides a clear framework for what HUD will cover, helping you to set realistic expectations for your rental income.

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.