Location: Pike County, KY | Metro: Pike County, KY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,820 |
| 5 Bedrooms | $2,111 |
| 6 Bedrooms | $2,364 |
| 7 Bedrooms | $2,553 |
| 8 Bedrooms | $2,681 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 41527 are straightforward. The SAFMR (Standard Area Fair Market Rent) for a two-bedroom apartment is set at $980 per month for fiscal year 2026. This figure is specific to this ZIP code, meaning it's tailored to reflect the rental market conditions here.
Local market rents for a two-bedroom unit are currently unavailable, but the SAFMR provides a benchmark for landlords to understand the maximum amount they can charge tenants who use Section 8 vouchers. The actual payment received by landlords consists of two parts: the voucher contribution and the tenant's portion of the rent.
The voucher contribution is based on the SAFMR, which in this case is $980. However, the total rent cannot exceed 40% of the tenant's income, which is their responsibility to pay. If the tenant's share plus the utility allowances does not reach the SAFMR, the landlord will receive the difference from the government to ensure the total rent equals $980.
Utility allowances vary but typically cover a portion of the tenant's electricity, gas, water, and sewer costs. These allowances are added to the voucher contribution to determine the total subsidy amount. Landlords should be aware that while the SAFMR sets a cap, the actual reimbursement may be less if the tenant's income is lower.
To illustrate, if a tenant's income allows them to contribute $400 towards the rent, and utility allowances amount to $100, then the government would cover the remaining $480 to bring the total to the SAFMR of $980. This ensures landlords receive a consistent, reliable monthly income that matches the SAFMR.
In ZIP 41527, landlords should anticipate a reimbursement gap or surplus based on the SAFMR of $980. Since the local market rent is not available, it's advisable to compare the SAFMR against nearby areas to gauge competitiveness. If the market rent is higher than $980, landlords may face a gap where they need to subsidize the difference. Conversely, if the market rent is lower, landlords might see a surplus, receiving more than they would in a typical market lease.
Landlords must also consider the administrative aspects of accepting Section 8 vouchers, including regular inspections and adherence to housing quality standards. Despite these considerations, the SAFMR of $980 offers a stable and predictable source of income, making it an attractive option for those willing to comply with program requirements.
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.