Location: Marshall County, KY | Metro: Calloway County, KY
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,310 |
| 5 Bedrooms | $1,520 |
| 6 Bedrooms | $1,702 |
| 7 Bedrooms | $1,838 |
| 8 Bedrooms | $1,930 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $990 | $160,122 | 0.62% | D |
| 3BR | $1,270 | $250,562 | 0.51% | F |
| 4BR | $1,310 | $350,592 | 0.37% | F |
| 5BR | $1,520 | $438,932 | 0.35% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP 42025, located in Marshall County, Kentucky, are straightforward. For a two-bedroom unit, the SAFMR (Small Area Fair Market Rent) is set at $970 per month for fiscal year 2026. This figure is specific to this ZIP code, ensuring that it accurately reflects the rental costs within the area.
In comparison, the local market rent for a similar unit is reported at $784, based on Census ACS data. This indicates that the SAFMR is higher than the average local market rent, which can be beneficial for landlords participating in the program.
When a tenant uses a Section 8 voucher, they typically pay 30% of their adjusted income towards rent. This amount is combined with the utility allowance to determine the total subsidy paid by the Housing Authority. The utility allowance varies but is designed to cover the cost of utilities such as electricity, water, and gas. As of the latest data, the utility allowance for a two-bedroom unit can range from $200 to $300 per month, depending on the specifics of the tenant's situation and local rates.
Let’s assume a tenant’s contribution is $291 (30% of an adjusted income of $970), and the utility allowance is $250. In this case, the total subsidy paid by the Housing Authority would be $541 ($291 + $250).
The landlord receives the difference between the SAFMR and the tenant’s contribution plus the utility allowance. Therefore, in ZIP 42025, the landlord would receive the remaining $429 ($970 - $541) directly from the Housing Authority. This brings the total reimbursement to the landlord up to the SAFMR of $970.
In summary, the typical reimbursement for a two-bedroom unit in ZIP 42025 under the Section 8 program will result in a surplus for the landlord when compared to the local market rent of $784. The surplus is approximately $186 per month, making participation in the program financially viable and often more stable than traditional market rentals.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.