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Madison County/Waco/40385

40385

ZIPSAFMR
Madison County, KY
Zillow

ZIP Investment Score

90Below average

095130300
BRFMR
Eff. Rent
0 BR$690$690
1 BR$860$860
2 BR$980$1,080
3 BR$1,320$1,450
4 BR$1,540$1,540
5 BR$1,771Not available
6 BR$2,037Not available
7 BR$2,342Not available
8 BR$2,693Not available

Purchase Price Calculator

Maximum purchase price
$98,571

Cost breakdown

+Likely effective rent$1,080
HUD FMR$980
Market rent$1,900
Est. payment standard (110%)Used$1,080
-Principal and interest-$498
Loan amount$78,857
Down payment$19,714
Rate6.50%
Term30 years
-Operating costs-$382
Property taxes-$99
Insurance-$175
Utilities$0
HOA$0
Management-$108
=Target cash flow+$200
Calculation mode

Hold period projections

Annual appreciation rate
3-year hold
+$17,604(89.3% ROI)
Projected value
$106,150
Return breakdown
Property appreciation+$7,579
Loan principal paid down+$2,825
Rental cash flow+$7,200
5-year hold
+$29,991(152.1% ROI)
Projected value
$111,524
Return breakdown
Property appreciation+$12,953
Loan principal paid down+$5,038
Rental cash flow+$12,000
10-year hold
+$63,613(322.7% ROI)
Projected value
$126,179
Return breakdown
Property appreciation+$27,608
Loan principal paid down+$12,005
Rental cash flow+$24,000

Public Housing Authority

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Rolodex

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Market Alignment

2 BR
0.52
3 BR
0.68
0.701.001.30aligned range
Historical
FY 2023-2027
FMR
FY2027
Market rent
last ~365 days
Property value
--
Tax rate
--
Mortgage rate
--

ZIP 40385 fair market rent, FY 2027

For FY 2027, HUD's Small Area Fair Market Rent for a two-bedroom unit in ZIP 40385 (Waco, KY) is $980 a month. That is up 6.5% from $920 in FY 2026. Waco is in the Madison County, KY non-metropolitan FMR area. HUD also publishes the ZIP-level Small Area FMRs shown here, but unless the local housing authority has adopted them, vouchers are based on the county-wide two-bedroom FMR of $993. Among 8 ZIP codes in Madison County, 40385 has the 4th-highest two-bedroom rent (county range $910–$1,030). The median county two-bedroom FMR in Kentucky is $925, so ZIP 40385 is 6% above it.

FY 2027 rent by bedroom

FY 2027 fair market rent by bedroom for 40385
BedroomsFY 2027Change90–110% range
Studio$690+3.0%$621–$759
1BR$860+7.5%$774–$946
2BR$980+6.5%$882–$1,078
3BR$1,320+6.5%$1,188–$1,452
4BR$1,540+10.8%$1,386–$1,694

Fair market rent history, FY 2023–2027

Fair market rent by fiscal year for 40385
Fiscal yearStudio1BR2BR3BR4BR
FY 2027$690$860$980$1,320$1,540
FY 2026$670$800$920$1,240$1,390
FY 2025$690$770$920$1,240$1,340
FY 2024area FMR$750$794$914$1,288$1,301
FY 2023area FMR$641$650$783$1,055$1,059

Marked years use a different HUD benchmark than FY 2027, so they are not a like-for-like change.

Two-bedroom rent in nearby Madison County ZIP codes

FY 2027 two-bedroom Small Area FMR by ZIP code
ZIP code2 bedroomvs. 40385
40385Current$980—
40403$940−4.1%
40404$940−4.1%
40405$990+1.0%
40456$910−7.1%
40461$920−6.1%
40475$1,030+5.1%
40476$990+1.0%

Questions about ZIP 40385 rents

How much will Section 8 pay for a two-bedroom in ZIP 40385?

Housing authorities set voucher payment standards, normally between 90% and 110% of the FMR. With the county-wide two-bedroom FMR of $993, which applies unless the housing authority uses Small Area FMRs, that basic range is $894 to $1,092 a month; under the ZIP-level Small Area FMR of $980 it would be $882 to $1,078. The voucher pays the lower of the payment standard or the gross rent, minus the tenant's share, which is usually about 30% of adjusted monthly income. Confirm the local housing authority's current schedule before underwriting.

Which HUD fair market rent area is ZIP 40385 in?

ZIP 40385 is in the Madison County, KY non-metropolitan FMR area. Small Area FMRs are optional here; the county-wide two-bedroom FMR is $993.

How much did fair market rent change in ZIP 40385 for FY 2027?

The two-bedroom FMR rose 6.5%, from $920 in FY 2026 to $980 in FY 2027. Since FY 2025 it has risen 6.5%.

When do FY 2027 fair market rents take effect?

HUD's FY 2027 fair market rents took effect on October 1, 2026. When FMRs change, housing authorities generally have up to three months to bring payment standards back within 90% to 110% of the new FMR.

Source: HUD FY 2027 Small Area Fair Market Rents and area FMRs. Payment-standard ranges are 90% to 110% of FMR, HUD's basic range, not a housing authority's published schedule. How payment standards are set

County fair market rentWaco, KY fair market rentKY statewide rentsWhat is SAFMR?Data sources