FY2027 Small Area FMR · Berea, KY

ZIP 40404 Fair Market Rent & Payment Standards

HUD's FY2027 Small Area Fair Market Rent for a two-bedroom home in ZIP code 40404 (Berea, KY) is $940 a month, up 6.8% from FY2026. That is 5% below the Madison County, KY area-wide FMR of $993.

2-bedroom SAFMR$940per month ▲ 6.8%

Area-wide 2 BR FMR$993Madison County, KY

Rank in the area5thof 8 ZIP codes

Payment standard range, 2 bedrooms

90% of SAFMR$846

2 BR Small Area FMR$940

110% of SAFMR$1,034

Housing agencies may set voucher payment standards anywhere from 90% to 110% of the FMR without asking HUD.

Studio$660▼ 1.5%

1 BR$820▲ 7.9%

2 BR$940▲ 6.8%

3 BR$1,300▲ 7.4%

4 BR$1,500▲ 10.3%

FY2027 FY2026

Where 40404 sits in the Madison County, KY area

Of the 8 ZIP codes HUD lists for the area, 40404 has the 5th highest two-bedroom Small Area FMR. Madison County, 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 $993 for two bedrooms; an agency that opts in to Small Area FMRs would use $940 for this ZIP code instead.

All unit sizes

Monthly gross rent including utilities
Unit	FY2027 SAFMR	Payment standard range	Area-wide FMR	FY2026 SAFMR
Studio	$660	$594 – $726	$691	$670
1 bedroom	$820	$738 – $902	$859	$760
2 bedrooms	$940	$846 – $1,034	$993	$880
3 bedrooms	$1,300	$1,170 – $1,430	$1,375	$1,210
4 bedrooms	$1,500	$1,350 – $1,650	$1,600	$1,360

A household renting a two-bedroom home at the Small Area FMR of $940 needs about $37,600 a year to keep housing costs at 30% of income. The area median family income is $85,800 and the 80% low-income limit for four people is $68,650. ZIP code 40404 lies mainly in Madison County. See the Madison County, KY county page for the full income limits table and the household check.

Nearby ZIP codes

ZIP	Place	Distance	2 BR SAFMR
40403	Berea	1.1 mi	$940
40461	Paint Lick	6.3 mi	$920
40460	Orlando	12.4 mi	$910
40475	Richmond	13.0 mi	$1,030
40481	Sandgap	14.0 mi	$910
40419	Crab Orchard	14.0 mi	$930

Questions

What is the Fair Market Rent for ZIP code 40404?

HUD's FY2027 Small Area Fair Market Rents for 40404 are $660 (studio), $820 (1 BR), $940 (2 BR), $1,300 (3 BR) and $1,500 (4 BR) a month.

What is the Section 8 payment standard in 40404?

Housing agencies set payment standards between 90% and 110% of the applicable FMR without HUD approval. For a two-bedroom unit in 40404 that range is $846 to $1,034 if the agency uses Small Area FMRs. Ask your housing agency for its actual payment standard.

Which income limits apply in 40404?

The FY2026 income limits of the Madison County, KY area apply: median family income $85,800, low-income (80%) limit $68,650 for a family of four.