FY2027 Small Area FMR · Clay City, KY
ZIP 40312 Fair Market Rent & Payment Standards
HUD's FY2027 Small Area Fair Market Rent for a two-bedroom home in ZIP code 40312 (Clay City, KY) is $1,150 a month, up 9.5% from FY2026. That is 19% below the Lexington-Fayette, KY area-wide FMR of $1,416.
Payment standard range, 2 bedrooms
Housing agencies may set voucher payment standards anywhere from 90% to 110% of the FMR without asking HUD.
FY2027 FY2026
Where 40312 sits in the Lexington-Fayette, KY area
Of the 57 ZIP codes HUD lists for the area, 40312 has the 48th highest two-bedroom Small Area FMR. Lexington-Fayette, KY is not on HUD's list of mandatory Small Area FMR areas, so voucher payment standards here are normally based on the area-wide FMR of $1,416 for two bedrooms; an agency that opts in to Small Area FMRs would use $1,150 for this ZIP code instead.
ZIP code 40312 crosses more than one HUD area. HUD also lists it under Estill County, KY (same figures) and Powell County, KY (same figures). The figure that applies depends on which side of the line the home is.
All unit sizes
| Unit | FY2027 SAFMR | Payment standard range | Area-wide FMR | FY2026 SAFMR |
|---|---|---|---|---|
| Studio | $800 | $720 – $880 | $986 | $720 |
| 1 bedroom | $980 | $882 – $1,078 | $1,205 | $890 |
| 2 bedrooms | $1,150 | $1,035 – $1,265 | $1,416 | $1,050 |
| 3 bedrooms | $1,570 | $1,413 – $1,727 | $1,948 | $1,430 |
| 4 bedrooms | $1,750 | $1,575 – $1,925 | $2,108 | $1,610 |
A household renting a two-bedroom home at the Small Area FMR of $1,150 needs about $46,000 a year to keep housing costs at 30% of income. The area median family income is $102,100 and the 80% low-income limit for four people is $81,700. ZIP code 40312 lies mainly in Powell County and Estill County. See the Lexington-Fayette, KY metro page for the full income limits table and the household check.
Nearby ZIP codes
Questions
What is the Fair Market Rent for ZIP code 40312?
HUD's FY2027 Small Area Fair Market Rents for 40312 are $800 (studio), $980 (1 BR), $1,150 (2 BR), $1,570 (3 BR) and $1,750 (4 BR) a month.
What is the Section 8 payment standard in 40312?
Housing agencies set payment standards between 90% and 110% of the applicable FMR without HUD approval. For a two-bedroom unit in 40312 that range is $1,035 to $1,265 if the agency uses Small Area FMRs. Ask your housing agency for its actual payment standard.
Which income limits apply in 40312?
The FY2026 income limits of the Lexington-Fayette, KY area apply: median family income $102,100, low-income (80%) limit $81,700 for a family of four.