Location: Graves County, KY | Metro: Graves County, KY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $680 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,350 |
| 5 Bedrooms | $1,566 |
| 6 Bedrooms | $1,754 |
| 7 Bedrooms | $1,894 |
| 8 Bedrooms | $1,989 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 42061 are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $1,040 per month for fiscal year 2026. This rate is specific to this ZIP code, meaning it does not vary based on the broader metropolitan or county-level averages. To understand the financial implications for landlords, let's break down how the voucher system works.
A Section 8 voucher holder is responsible for paying 30% of their adjusted income towards rent. This amount is considered the tenant portion. The remaining balance up to the SAFMR is covered by the Housing Choice Voucher program, administered by local public housing agencies. Additionally, the program includes utility allowances, which can vary but typically cover part of the tenant’s electricity, gas, water, and sewer costs.
To illustrate, if a tenant has an adjusted monthly income of $1,000, they would be required to pay $300 towards rent. The Housing Authority would then cover the difference between the tenant's payment and the SAFMR, which in this case is $740 ($1,040 - $300). Utility allowances might add another $100-$200 to the total reimbursement, depending on the specifics of the voucher and the local cost of utilities. Therefore, the total reimbursement to the landlord could range from $840 to $940, assuming a utility allowance of $100-$200.
The SAFMR rate of $1,040 is the maximum allowable rent for a two-bedroom unit under the Section 8 program in ZIP 42061. If the local market rent exceeds this figure, landlords will not receive the full market rate from the voucher program. Conversely, if the market rent is below $1,040, landlords may still receive the full SAFMR rate, though this scenario is less common given the specific setting of SAFMRs.
In ZIP 42061, the typical reimbursement gap for a two-bedroom apartment is around $100-$200 per month, considering the SAFMR and average utility allowances. This means landlords might receive $100-$200 less than the SAFMR when utility allowances are factored into the total reimbursement. However, the exact surplus or deficit depends on the individual circumstances of the tenant and the specific terms of the voucher.
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.