Location: Owensboro, KY | Metro: Owensboro, KY MSA
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 | $760 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,330 |
| 5 Bedrooms | $1,543 |
| 6 Bedrooms | $1,728 |
| 7 Bedrooms | $1,866 |
| 8 Bedrooms | $1,959 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $156,991 | 0.64% | D |
| 3BR | $1,320 | $241,093 | 0.55% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP 42355, Maceo, KY, within Daviess County, revolve around the SAFMR (Small Area Fair Market Rent) which is specifically tailored for this ZIP code. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $870. This figure represents the maximum amount that the Housing Choice Voucher program will pay toward the rent for a unit of this size in this specific ZIP code.
The local market rent for a two-bedroom apartment in ZIP 42355 is slightly higher at $907, based on the latest Census ACS data. This means that landlords might be able to charge a bit more than the SAFMR if they choose to do so, but the voucher program will only cover up to $870.
A voucher payment consists of two parts: the tenant portion and the utility allowance. The tenant portion is typically 30% of their household income. If a tenant's income is such that 30% equals $261, then the voucher would pay the difference between the tenant's contribution and the SAFMR. In this case, the voucher would cover $870 - $261 = $609 towards the rent.
In addition to the rent subsidy, the voucher also includes an allowance for utilities. For ZIP 42355, the utility allowance is $275 per month. This amount is intended to help cover the costs of electricity, water, and other services that tenants use. Therefore, the total monthly reimbursement a landlord can expect from the voucher program is $609 for rent plus $275 for utilities, totaling $884.
This brings us to the typical reimbursement gap or surplus in ZIP 42355. Given the local market rent of $907, landlords would face a shortfall of $907 - $884 = $23 per month if they charged the market rate. However, since the SAFMR is $870, landlords who accept the voucher rate will have a surplus of $870 - $884 = -$14, meaning they will receive slightly less than the SAFMR when factoring in the utility allowance.
To summarize, landlords in ZIP 42355 should understand that the SAFMR of $870 sets the maximum rent covered by the voucher program. With a typical utility allowance of $275, the total reimbursement is $884. This leaves a small gap between the market rent of $907 and the reimbursement, or a slight surplus if the landlord adheres strictly to the SAFMR. Landlords must weigh these figures against their own financial needs and the benefits of having a reliable source of rental income through 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.