Section 8 Fair Market Rent (FMR) for ZIP 41204 - 2027

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$650
1 Bedroom	$790
2 Bedrooms	$910
3 Bedrooms	$1,190
4 Bedrooms	$1,310
5 Bedrooms	$1,520
6 Bedrooms	$1,702
7 Bedrooms	$1,838
8 Bedrooms	$1,930

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Based on recent data, the median home value in ZIP 41204, located in Boons Camp, Kentucky, stands at approximately $128,000. This figure is derived from a reliable source and reflects the current real estate landscape in the area. To provide a comprehensive analysis for Section 8 investors, we'll consider two scenarios: using the annualized Fair Market Rent (FMR) for a 2-bedroom unit, which is set at $870 per month for FY 2026, and comparing it against the market rent, which is currently not available for this ZIP code. First, let's calculate the gross yield based on the FMR. With an annual rent income of $10,440 ($870 x 12 months) and a median home value of $128,000, the implied gross yield would be approximately 8.16%. This calculation provides a baseline for potential returns if the property were rented exclusively through the Section 8 program. Second, considering the lack of specific market rent data, we can infer that the actual market rent could be higher than the FMR. However, without precise figures, it's challenging to provide a definitive gross yield for this scenario. It's important to note that the higher the market rent, the higher the gross yield would be compared to the FMR-based calculation. Given the 3.7% renter density in ZIP 41204 and the absence of specific Days on Market (DOM) data, it's reasonable to conclude that the FMR-based gross yield is a conservative estimate. In reality, achieving a gross yield higher than 8.16% might be feasible, especially if market conditions allow for rents above the FMR.

In summary, while the FMR provides a clear benchmark for Section 8 rentals, actual market conditions may offer higher returns. Investors should conduct thorough due diligence, including checking local rental listings and speaking with property managers, to get a more accurate picture of potential gross yields.

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.