Location: Metcalfe County, KY | Metro: Barren County, KY
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 | $650 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,140 |
| 4 Bedrooms | $1,260 |
| 5 Bedrooms | $1,462 |
| 6 Bedrooms | $1,637 |
| 7 Bedrooms | $1,768 |
| 8 Bedrooms | $1,856 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,140 | $228,576 | 0.5% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 42746 are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this area for fiscal year 2026 is set at $870. This figure is specifically tailored to reflect the rental costs within this ZIP code, ensuring it accurately represents the local housing market conditions.
Contrastingly, the local market rent for a similar two-bedroom unit is reported at $717 according to the Census ACS (American Community Survey). This discrepancy highlights the potential benefits of participating in the Section 8 program, as landlords can receive a higher reimbursement rate than the typical market rent.
A landlord's income from a Section 8 voucher is calculated based on the SAFMR, but with adjustments. Tenants are generally required to contribute 30% of their adjusted monthly income towards rent. For simplicity, let's assume a tenant's income is such that they pay 30% of the SAFMR. In this case, the tenant would contribute $261 (30% of $870).
The voucher payment covers the remainder of the SAFMR, which is $609 ($870 - $261). However, landlords also receive utility allowances. These allowances vary but are typically around $100-$150 per month for a two-bedroom apartment. Assuming an allowance of $125, the total reimbursement a landlord would receive is $734 ($609 + $125).
This amount exceeds the local market rent by $117 ($734 - $717). Therefore, landlords in ZIP 42746 who participate in the Section 8 program can expect a surplus of $117 per month for a two-bedroom unit, compared to the average local market rent.
To summarize, the SAFMR sets the maximum allowable rent at $870, while the actual market rent is lower at $717. Tenant contributions and utility allowances combine to ensure landlords receive a reimbursement of $734, resulting in a surplus of $117 per month for a two-bedroom apartment.
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.