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Clark County/Lexington/40509

40509

ZIPSAFMR
Clark County, KY
Zillow

ZIP Investment Score

72Below average

095130300
BRFMR
Eff. Rent
0 BR$1,230$1,160
1 BR$1,500$1,240
2 BR$1,760$1,470
3 BR$2,420$1,920
4 BR$2,620$2,590
5 BR$3,013Not available
6 BR$3,465Not available
7 BR$3,985Not available
8 BR$4,582Not available

Purchase Price Calculator

Maximum purchase price
$156,525

Cost breakdown

+Likely effective rent$1,470
HUD FMR$1,760
Market rentUsed$1,470
Est. payment standard (90%)$1,580
-Principal and interest-$791
Loan amount$125,220
Down payment$31,305
Rate6.50%
Term30 years
-Operating costs-$479
Property taxes-$157
Insurance-$175
Utilities$0
HOA$0
Management-$147
=Target cash flow+$200
Calculation mode

Hold period projections

Annual appreciation rate
3-year hold
+$23,722(75.8% ROI)
Projected value
$168,560
Return breakdown
Property appreciation+$12,035
Loan principal paid down+$4,486
Rental cash flow+$7,200
5-year hold
+$40,569(129.6% ROI)
Projected value
$177,094
Return breakdown
Property appreciation+$20,569
Loan principal paid down+$8,000
Rental cash flow+$12,000
10-year hold
+$86,904(277.6% ROI)
Projected value
$200,365
Return breakdown
Property appreciation+$43,840
Loan principal paid down+$19,063
Rental cash flow+$24,000

Public Housing Authority

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Rolodex

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Market Alignment

Studio
1.06
1 BR
1.21
2 BR
1.20
3 BR
1.26
4 BR
1.01
0.701.001.30aligned range
Historical
FY 2023-2027
FMR
FY2027
Market rent
last ~365 days
Property value
--
Tax rate
--
Mortgage rate
--

ZIP 40509 fair market rent, FY 2027

For FY 2027, HUD's Small Area Fair Market Rent for a two-bedroom unit in ZIP 40509 (Lexington, KY) is $1,760 a month. That is up 9.3% from $1,610 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 7 ZIP codes in Clark County, 40509 has the highest two-bedroom rent (county range $1,150–$1,760). The median county two-bedroom FMR in Kentucky is $925, so ZIP 40509 is 90% above it.

FY 2027 rent by bedroom

FY 2027 fair market rent by bedroom for 40509
BedroomsFY 2027Change90–110% range
Studio$1,230+9.8%$1,107–$1,353
1BR$1,500+9.5%$1,350–$1,650
2BR$1,760+9.3%$1,584–$1,936
3BR$2,420+9.5%$2,178–$2,662
4BR$2,620+6.5%$2,358–$2,882

Fair market rent history, FY 2023–2027

Fair market rent by fiscal year for 40509
Fiscal yearStudio1BR2BR3BR4BR
FY 2027$1,230$1,500$1,760$2,420$2,620
FY 2026$1,120$1,370$1,610$2,210$2,460
FY 2025$970$1,190$1,410$1,920$2,160
FY 2024$960$1,180$1,410$1,920$2,160
FY 2023$850$1,010$1,230$1,680$1,940

Two-bedroom rent in nearby Clark County ZIP codes

FY 2027 two-bedroom Small Area FMR by ZIP code
ZIP code2 bedroomvs. 40509
40312$1,150−34.7%
40353$1,150−34.7%
40361$1,150−34.7%
40391$1,180−33.0%
40392$1,180−33.0%
40509Current$1,760—
40515$1,690−4.0%

Questions about ZIP 40509 rents

How much will Section 8 pay for a two-bedroom in ZIP 40509?

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 $1,760 it would be $1,584 to $1,936. 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 40509 in?

ZIP 40509 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 40509 for FY 2027?

The two-bedroom FMR rose 9.3%, from $1,610 in FY 2026 to $1,760 in FY 2027. Since FY 2023 it has risen 43.1%.

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