Location: Hickman County, KY | Metro: Carlisle County, KY HUD Metro FMR Area
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 | $650 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,270 |
| 5 Bedrooms | $1,473 |
| 6 Bedrooms | $1,650 |
| 7 Bedrooms | $1,782 |
| 8 Bedrooms | $1,871 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $910 | $138,412 | 0.66% | D |
| 3BR | $1,220 | $203,685 | 0.6% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP 42039, which includes Fancy Farm, Kentucky in Carlisle County, operate under specific guidelines that impact both landlords and tenants. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) for FY 2026 is set at $920. This figure represents the maximum amount that the Housing Choice Voucher program will pay for rent in this specific ZIP code.
In contrast, the local market rent for a similar unit is reported at $753 according to the Census ACS (American Community Survey) data. This discrepancy highlights the potential financial dynamics at play for landlords participating in the Section 8 program.
A landlord should understand that the voucher payment does not cover the entire rent amount. Instead, it covers the difference between the SAFMR and the tenant's portion of the rent, which is typically 30% of their income. For example, if a tenant's income is $1,000 per month, they would be responsible for paying $300 towards the rent. The remaining amount up to the SAFMR of $920 would be covered by the voucher program.
Additionally, the voucher program includes utility allowances, which can vary based on the type of unit and its location. These allowances are designed to help cover the costs of utilities such as electricity, gas, water, and sewage. However, these allowances do not directly affect the rent reimbursement calculation but can influence the overall living expenses for the tenant.
To walk through an example, let’s assume the local market rent of $753 is charged for a two-bedroom apartment. If the tenant’s portion is $300, the voucher program would pay the difference between the market rent and the tenant's portion, which is $453 ($753 - $300 = $453).
However, since the SAFMR is higher at $920, the voucher program would actually reimburse the landlord the full market rent of $753, as it is below the SAFMR limit. In this scenario, there is no direct reimbursement gap or surplus because the market rent is lower than the SAFMR. But if the landlord were to charge the full SAFMR of $920, the reimbursement would still be capped at the market rent of $753, leaving a gap of $167 ($920 - $753 = $167) that the landlord would not receive.
In summary, for a two-bedroom unit in ZIP 42039, the SAFMR sets the maximum reimbursement at $920, while the local market rent stands at $753. Landlords charging the market rent will receive full reimbursement, whereas those setting rents closer to the SAFMR will face a reimbursement gap. This gap is the difference between the SAFMR and the actual market rent, which in this case is $167 per month.
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.