Location: Hickman County, KY | Metro: Fulton 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 | $650 |
| 1 Bedroom | $690 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,250 |
| 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $910 | $90,543 | 1.01% | B |
| 3BR | $1,250 | $134,203 | 0.93% | C |
| 4BR | $1,310 | $167,079 | 0.78% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 42041, located in Fulton, Kentucky, within Fulton County, are defined by specific financial parameters. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $870. This figure represents the maximum amount that the Housing Choice Voucher program will pay on behalf of eligible tenants. However, it's important to note that the local market rent for a similar unit is reported at $620 according to the Census ACS data.
To understand how this works for landlords, let's break down the components of the voucher payment. A tenant participating in the Section 8 program is typically responsible for paying 30% of their adjusted income towards rent. The remaining amount is covered by the voucher, up to the SAFMR limit. Additionally, there are utility allowances which vary but can be significant in covering electricity, gas, water, and sewer costs. These allowances are not included in the base rental amount and are paid directly to the tenant.
In ZIP 42041, if we assume an average utility allowance of around $200, then the total reimbursement a landlord might receive per month would be the sum of the tenant’s contribution and the voucher payment. For instance, if a tenant's adjusted income is $1,000, they would contribute $300 toward the rent. The voucher would cover the difference up to $870, so the landlord would receive $300 from the tenant plus $570 from the voucher, totaling $870. This calculation ensures that landlords are not left with a shortfall due to the utility allowances.
Given these specifics, the typical reimbursement gap or surplus for a two-bedroom unit in ZIP 42041 can be calculated. With a local market rent of $620 and a SAFMR of $870, landlords could expect a surplus of $250 per month before accounting for utility allowances. After including utility allowances, the total surplus would be approximately $450 per month, assuming the average utility allowance is applied. This surplus provides landlords with a buffer that can help cover maintenance, property management, and other expenses associated with owning rental properties.
Landlords should also be aware that the SAFMR is specifically set for this ZIP code, meaning it reflects the unique economic conditions of the area. This targeted approach aims to ensure that rents are affordable for low-income families while providing landlords with a reasonable return on their investment.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.