Location: Monroe County, KY | Metro: Allen 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 | $780 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,030 | $143,495 | 0.72% | D |
| 3BR | $1,310 | $221,726 | 0.59% | F |
| 4BR | $1,640 | $296,041 | 0.55% | F |
| 5BR | $1,902 | $368,379 | 0.52% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 42164, Scottsville, KY, within Allen County, revolve around the Subsidized Average Fair Market Rent (SAFMR) which is set specifically for this ZIP code. For a two-bedroom apartment, the SAFMR for FY 2024 is $950. This figure is crucial because it represents the maximum amount that the Housing Choice Voucher program will pay towards the rent.
In contrast, the local market rent for a similar two-bedroom unit is $847, based on recent Census American Community Survey (ACS) data. This indicates that the SAFMR is higher than the average market rent, potentially providing a financial cushion for landlords.
When a tenant uses a Section 8 voucher, they are responsible for paying a portion of the rent themselves, typically 30% of their income. In addition to this, there is a utility allowance. Let's assume the tenant's portion is $285, and the utility allowance is $150. Therefore, the total reimbursement a landlord can expect from the voucher plus the tenant's contribution would be:
$950 (Section 8 payment) + $285 (tenant portion) + $150 (utility allowance) = $1,385.
This calculation shows the potential total monthly income a landlord could receive when renting to a tenant using a Section 8 voucher. However, the actual reimbursement to the landlord will be the lesser of the SAFMR or the market rent. Since the market rent is lower at $847, the landlord would receive $847 from the voucher program, plus the tenant's portion and utility allowance.
Thus, the landlord's total monthly income would be:
$847 (market rent) + $285 (tenant portion) + $150 (utility allowance) = $1,282.
Given these figures, there is no surplus for the landlord since the market rent is below the SAFMR. Instead, the landlord receives the full market rent plus the tenant's contribution and utility allowance. There is also no reimbursement gap because the voucher covers the entire market rent.
In summary, landlords in ZIP 42164 should expect to receive the local market rent of $847 for a two-bedroom unit, plus an additional $285 from the tenant and $150 for utilities, totaling $1,282 per month. This arrangement ensures that landlords are compensated at the market rate without any shortfall from the voucher program.
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.