Location: Todd County, KY | Metro: Clarksville, TN-KY HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $990 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,690 |
| 4 Bedrooms | $2,040 |
| 5 Bedrooms | $2,366 |
| 6 Bedrooms | $2,650 |
| 7 Bedrooms | $2,862 |
| 8 Bedrooms | $3,005 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 42266, Pembroke, KY, specifically within Christian County, hinge on understanding the relationship between the SAFMR (Small Area Fair Market Rent) and the local market rent. For a two-bedroom apartment in FY 2024, the SAFMR is set at $960. This figure is specific to this ZIP code, reflecting the localized cost of renting in Pembroke.
In contrast, the local market rent, as reported by the Census ACS, stands at $923. This lower figure represents the average rent charged for similar units in the area, without the influence of Section 8 subsidies. Landlords should be aware that while the SAFMR is higher, it does not necessarily mean they will receive the full amount from the voucher program.
A Section 8 voucher works by covering the difference between the tenant's contribution and the total rent. The tenant is expected to pay 30% of their income towards rent. For simplicity, let’s assume the tenant’s income is such that 30% of it equals $288, which is the average of the SAFMR and local market rent. In this scenario, the landlord would receive $288 from the tenant directly.
The remaining amount is covered by the housing authority. For a two-bedroom apartment with an SAFMR of $960, the housing authority would pay the landlord $672 ($960 - $288) plus any applicable utility allowances. Utility allowances can vary but typically add around $200 to the monthly reimbursement, bringing the total monthly reimbursement to approximately $872.
This reimbursement structure leaves a landlord with a slight surplus when compared to the local market rent. Given the local market rent of $923, the surplus would be $53 per month. However, if the landlord charges the full SAFMR rate of $960, there would be a gap of $88 per month that the landlord would not be compensated for by the voucher program.
Summary:
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.