Location: Taylor County, KY | Metro: Elizabethtown, 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 | $860 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,090 | $162,255 | 0.67% | D |
| 3BR | $1,500 | $239,464 | 0.63% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP 42716, which encompasses Buffalo, KY, in Larue County, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $890 for the fiscal year 2024. This is lower than the local market rent, which stands at $1,114 according to the latest Census ACS data.
A landlord participating in the Section 8 program receives payment from the housing authority based on the SAFMR rather than the market rent. For a two-bedroom unit, the housing authority will cover the difference between the tenant's portion and the SAFMR. Typically, the tenant is responsible for paying 30% of their adjusted income toward rent. If we assume an average adjusted income of $1,500 per month, the tenant would contribute approximately $450 toward the rent.
The remaining amount is covered by the housing authority, up to the SAFMR limit. In this case, the housing authority would pay $440 to meet the $890 SAFMR. However, if the tenant's portion exceeds the SAFMR, the tenant must pay the excess directly to the landlord.
In addition to the base rent, there are utility allowances. These vary but are typically around $200-$300 per month for a two-bedroom apartment. Landlords can receive these allowances to offset utility costs, ensuring they do not bear the brunt of higher utility bills.
Given these figures, the total reimbursement for a two-bedroom apartment in ZIP 42716 would be around $1,090-$1,190 when combining the base rent and utility allowances. This leaves a gap between the local market rent of $1,114 and the typical voucher reimbursement, resulting in a surplus for landlords of about $76-$186 per month.
To summarize, landlords in ZIP 42716 should expect a reimbursement of approximately $1,090-$1,190 for a two-bedroom apartment under the Section 8 program, which includes both the SAFMR and utility allowances. This amount is slightly below the local market rent, leaving a modest surplus for landlords.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.