FMR is below market; voucher rent may lag private rents.
0.62
1 BR
1 BR
0.80ratio
FMR$820
Market$1,030
vs market-$210
FMR is below market; voucher rent may lag private rents.
0.80
2 BR
2 BR
0.84ratio
FMR$940
Market$1,120
vs market-$180
FMR is below market; voucher rent may lag private rents.
0.84
3 BR
3 BR
0.89ratio
FMR$1,300
Market$1,460
vs market-$160
FMR is below market; voucher rent may lag private rents.
0.89
4 BR
4 BR
0.97ratio
FMR$1,500
Market$1,550
vs market-$50
FMR is near market; voucher and private rents are aligned.
0.97
0.700.800.901.001.101.201.30aligned range
Historical
FY 2023-2027
FMR
FY2027
Market rent
last ~365 days
Property value
--
Tax rate
--
Mortgage rate
--
ZIP 40404 fair market rent, FY 2027
For FY 2027, HUD's Small Area Fair Market Rent for a two-bedroom unit in ZIP 40404 (Madison County, KY) is $940 a month. That is up 6.8% from $880 in FY 2026. Madison County 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, 40404 is tied for the 5th-highest two-bedroom rent (county range $910–$1,030). The median county two-bedroom FMR in Kentucky is $925, so ZIP 40404 is 2% above it.
FY 2027 rent by bedroom
FY 2027 fair market rent by bedroom for 40404
Bedrooms
FY 2026
FY 2027
Change
90–110% range
Studio
$670
$660
−1.5%
$594–$726
1BR
$760
$820
+7.9%
$738–$902
2BR
$880
$940
+6.8%
$846–$1,034
3BR
$1,210
$1,300
+7.4%
$1,170–$1,430
4BR
$1,360
$1,500
+10.3%
$1,350–$1,650
Fair market rent history, FY 2023–2027
Fair market rent by fiscal year for 40404
Fiscal year
Studio
1BR
2BR
3BR
4BR
FY 2027
$660
$820
$940
$1,300
$1,500
FY 2026
$670
$760
$880
$1,210
$1,360
FY 2025
$710
$790
$910
$1,270
$1,360
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
How much will Section 8 pay for a two-bedroom in ZIP 40404?
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 $940 it would be $846 to $1,034. 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 40404 in?
ZIP 40404 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 40404 for FY 2027?
The two-bedroom FMR rose 6.8%, from $880 in FY 2026 to $940 in FY 2027. Since FY 2025 it has risen 3.3%.
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