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Fayette County/Lexington/40507

40507

ZIPSAFMR
Fayette County, KY
Zillow

ZIP Investment Score

36Below average

095130300
BRFMR
Eff. Rent
0 BR$860$950
1 BR$1,050$1,160
2 BR$1,230$1,350
3 BR$1,690$1,790
4 BR$1,830$2,010
5 BR$2,105Not available
6 BR$2,420Not available
7 BR$2,783Not available
8 BR$3,201Not available

Purchase Price Calculator

Maximum purchase price
$138,693

Cost breakdown

+Likely effective rent$1,350
HUD FMR$1,230
Market rent$1,540
Est. payment standard (110%)Used$1,350
-Principal and interest-$701
Loan amount$110,954
Down payment$27,739
Rate6.50%
Term30 years
-Operating costs-$449
Property taxes-$139
Insurance-$175
Utilities$0
HOA$0
Management-$135
=Target cash flow+$200
Calculation mode

Hold period projections

Annual appreciation rate
3-year hold
+$21,839(78.7% ROI)
Projected value
$149,357
Return breakdown
Property appreciation+$10,664
Loan principal paid down+$3,975
Rental cash flow+$7,200
5-year hold
+$37,314(134.5% ROI)
Projected value
$156,918
Return breakdown
Property appreciation+$18,225
Loan principal paid down+$7,089
Rental cash flow+$12,000
10-year hold
+$79,737(287.5% ROI)
Projected value
$177,539
Return breakdown
Property appreciation+$38,846
Loan principal paid down+$16,892
Rental cash flow+$24,000

Public Housing Authority

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Rolodex

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Market Alignment

Studio
0.86
1 BR
0.83
2 BR
0.80
3 BR
0.91
4 BR
0.69
0.701.001.30aligned range
Historical
FY 2023-2027
FMR
FY2027
Market rent
last ~365 days
Property value
--
Tax rate
--
Mortgage rate
--

ZIP 40507 fair market rent, FY 2027

For FY 2027, HUD's Small Area Fair Market Rent for a two-bedroom unit in ZIP 40507 (Lexington, KY) is $1,230 a month. That is up 7.0% from $1,150 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, 40507 has the 36th-highest two-bedroom rent (county range $1,150–$1,980). The median county two-bedroom FMR in Kentucky is $925, so ZIP 40507 is 33% above it.

FY 2027 rent by bedroom

FY 2027 fair market rent by bedroom for 40507
BedroomsFY 2027Change90–110% range
Studio$860+7.5%$774–$946
1BR$1,050+7.1%$945–$1,155
2BR$1,230+7.0%$1,107–$1,353
3BR$1,690+7.0%$1,521–$1,859
4BR$1,830+4.6%$1,647–$2,013

Fair market rent history, FY 2023–2027

Fair market rent by fiscal year for 40507
Fiscal yearStudio1BR2BR3BR4BR
FY 2027$860$1,050$1,230$1,690$1,830
FY 2026$800$980$1,150$1,580$1,750
FY 2025$740$910$1,080$1,470$1,650
FY 2024$750$920$1,100$1,490$1,690
FY 2023$650$770$940$1,280$1,480

Two-bedroom rent in nearby Fayette County ZIP codes

FY 2027 two-bedroom Small Area FMR by ZIP code
ZIP code2 bedroomvs. 40507
40502$1,370+11.4%
40503$1,450+17.9%
40504$1,190−3.3%
40505$1,200−2.4%
40506$1,450+17.9%
40507Current$1,230—
40508$1,390+13.0%
40509$1,760+43.1%
40510$1,580+28.5%
40511$1,560+26.8%
40512$1,450+17.9%
40513$1,800+46.3%

Questions about ZIP 40507 rents

How much will Section 8 pay for a two-bedroom in ZIP 40507?

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 $1,230 it would be $1,107 to $1,353. 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 40507 in?

ZIP 40507 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 40507 for FY 2027?

The two-bedroom FMR rose 7.0%, from $1,150 in FY 2026 to $1,230 in FY 2027. Since FY 2023 it has risen 30.9%.

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