Location: Grayson County, KY | Metro: Bowling Green, KY HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
U.S. Census Bureau data (2024)
To understand how Section 8 economics work in ZIP code 42275, it's essential to know the specifics of the housing assistance provided. For a two-bedroom apartment in this ZIP code, the SAFMR (Small Area Fair Market Rent) for fiscal year 2024 is set at $1250. This figure is crucial because it represents the maximum amount that the Housing Choice Voucher program will pay for rent in this specific area.
The SAFMR is determined based on local rental market conditions, but unfortunately, there isn't enough data available to provide the exact local market rent for ZIP 42275. However, the SAFMR serves as a benchmark for landlords to gauge the maximum reimbursement they can expect from the government for their units under the Section 8 program.
A voucher payment consists of two parts: the tenant's contribution and the government's subsidy. Tenants typically contribute about 30% of their adjusted income towards rent. If we assume an average adjusted income of $1500 per month for a Section 8 participant, the tenant would contribute approximately $450 towards the rent of a two-bedroom unit. The remaining balance, up to the SAFMR of $1250, is covered by the government. In this case, the government would cover $800.
Note that the government also provides utility allowances which vary based on the region and the size of the unit. These allowances are intended to help cover the costs of utilities such as electricity, water, and gas. While the exact utility allowance for ZIP 42275 isn't specified here, it's important to factor these into your overall income when considering participation in the Section 8 program.
In summary, for a two-bedroom apartment in ZIP 42275, a landlord can expect a total reimbursement of up to $1250 per month, with the tenant contributing about $450 and the government covering the rest. Given the SAFMR of $1250, if the market rent exceeds this amount, the landlord would face a reimbursement gap. Conversely, if the market rent is below $1250, the landlord could see a surplus. Without the precise local market rent, it's challenging to determine the exact gap or surplus, but landlords should be aware of this potential discrepancy.
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.