Section 8 Fair Market Rent (FMR) for ZIP 41520 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 41520, located in Pike County, Kentucky, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2026 is set at $980. This figure represents the maximum amount that a landlord can receive from the housing authority for a tenant who uses a Section 8 voucher.

To understand how this impacts your rental income, it's essential to break down the components of a voucher payment. A tenant using a Section 8 voucher typically pays 30% of their adjusted income towards rent. The remainder, up to the SAFMR limit, is covered by the housing authority. Additionally, utility allowances are factored into the total compensation you receive. However, the exact amount of these allowances varies based on the specific voucher and the tenant's needs.

Let's assume a hypothetical scenario where the tenant's portion of the rent is $300. In this case, the housing authority would cover the difference between the tenant's contribution and the SAFMR, which is $980. Therefore, the housing authority would pay you $680 to make up the shortfall, resulting in a total monthly rent of $980.

If the tenant's income is higher, say 40%, and they contribute $400, then the housing authority would pay you $580. Conversely, if the tenant contributes less, such as $200, the housing authority would pay you $780 to reach the total of $980. Utility allowances can further adjust the reimbursement amounts but do not exceed the SAFMR cap.

Given the SAFMR of $980 for a two-bedroom unit in ZIP 41520, and without specific local market rent data, we can infer that if the local market rent is below $980, landlords might see a surplus, meaning they could potentially charge more than the market rate and still be within the voucher limits. If the local market rent exceeds $980, landlords will face a reimbursement gap, receiving less than they might otherwise charge in the open market.

In conclusion, landlords in ZIP 41520 should expect a reimbursement of up to $980 per month for a two-bedroom unit, with the actual amount depending on the tenant's contribution and any applicable utility allowances. Without precise local market rent figures, the potential for either a surplus or a gap exists, contingent upon the prevailing market conditions.

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.