FMR is near market; voucher and private rents are aligned.
1.02
2 BR
2 BR
0.84ratio
FMR$1,450
Market$1,720
vs market-$270
FMR is below market; voucher rent may lag private rents.
0.84
3 BR
3 BR
0.93ratio
FMR$2,000
Market$2,160
vs market-$160
FMR is near market; voucher and private rents are aligned.
0.93
4 BR
4 BR
0.64ratio
FMR$2,160
Market$3,390
vs market-$1,230
FMR is below market; voucher rent may lag private rents.
0.64
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
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ZIP 40506 fair market rent, FY 2027
For FY 2027, HUD's Small Area Fair Market Rent for a two-bedroom unit in ZIP 40506 (Lexington, KY) is $1,450 a month. That is up 10.7% from $1,310 in FY 2026. Lexington is in the Lexington-Fayette, KY MSA. 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 metro-wide two-bedroom FMR of $1,416. Among 40 ZIP codes in Fayette County, 40506 is tied for the 9th-highest two-bedroom rent (county range $1,150–$1,980). The median county two-bedroom FMR in Kentucky is $925, so ZIP 40506 is 57% above it.
FY 2027 rent by bedroom
FY 2027 fair market rent by bedroom for 40506
Bedrooms
FY 2026
FY 2027
Change
90–110% range
Studio
$910
$1,010
+11.0%
$909–$1,111
1BR
$1,110
$1,230
+10.8%
$1,107–$1,353
2BR
$1,310
$1,450
+10.7%
$1,305–$1,595
3BR
$1,800
$2,000
+11.1%
$1,800–$2,200
4BR
$2,000
$2,160
+8.0%
$1,944–$2,376
Fair market rent history, FY 2023–2027
Fair market rent by fiscal year for 40506
Fiscal year
Studio
1BR
2BR
3BR
4BR
FY 2027
$1,010
$1,230
$1,450
$2,000
$2,160
FY 2026
$910
$1,110
$1,310
$1,800
$2,000
FY 2025
$820
$1,010
$1,200
$1,630
$1,830
FY 2024
$820
$1,010
$1,210
$1,640
$1,860
FY 2023
$730
$870
$1,060
$1,440
$1,670
Two-bedroom rent in nearby Fayette County ZIP codes
How much will Section 8 pay for a two-bedroom in ZIP 40506?
Housing authorities set voucher payment standards, normally between 90% and 110% of the FMR. With the metro-wide two-bedroom FMR of $1,416, which applies unless the housing authority uses Small Area FMRs, that basic range is $1,274 to $1,558 a month; under the ZIP-level Small Area FMR of $1,450 it would be $1,305 to $1,595. 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 40506 in?
ZIP 40506 is in the Lexington-Fayette, KY MSA. Small Area FMRs are optional here; the metro-wide two-bedroom FMR is $1,416.
How much did fair market rent change in ZIP 40506 for FY 2027?
The two-bedroom FMR rose 10.7%, from $1,310 in FY 2026 to $1,450 in FY 2027. Since FY 2023 it has risen 36.8%.
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