FY2027 Small Area FMR · Lexington, KY

ZIP 40505 Fair Market Rent & Payment Standards

HUD's FY2027 Small Area Fair Market Rent for a two-bedroom home in ZIP code 40505 (Lexington, KY) is $1,200 a month, up 8.1% from FY2026. That is 15% below the Lexington-Fayette, KY area-wide FMR of $1,416.

2-bedroom SAFMR$1,200per month ▲ 8.1%

Area-wide 2 BR FMR$1,416Lexington-Fayette, KY

Rank in the area43rdof 57 ZIP codes

Payment standard range, 2 bedrooms

90% of SAFMR$1,080

2 BR Small Area FMR$1,200

110% of SAFMR$1,320

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

Studio$840▲ 9.1%

1 BR$1,020▲ 8.5%

2 BR$1,200▲ 8.1%

3 BR$1,650▲ 8.6%

4 BR$1,790▲ 5.9%

FY2027 FY2026

Where 40505 sits in the Lexington-Fayette, KY area

Of the 57 ZIP codes HUD lists for the area, 40505 has the 43rd 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 $1,200 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	$840	$756 – $924	$986	$770
1 bedroom	$1,020	$918 – $1,122	$1,205	$940
2 bedrooms	$1,200	$1,080 – $1,320	$1,416	$1,110
3 bedrooms	$1,650	$1,485 – $1,815	$1,948	$1,520
4 bedrooms	$1,790	$1,611 – $1,969	$2,108	$1,690

A household renting a two-bedroom home at the Small Area FMR of $1,200 needs about $48,000 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 40505 lies mainly in Fayette County. See the Lexington-Fayette, KY metro page for the full income limits table and the household check.

Nearby ZIP codes

ZIP	Place	Distance	2 BR SAFMR
40507	Lexington	2.3 mi	$1,230
40526	Lexington	2.4 mi	$1,390
40508	Lexington	3.0 mi	$1,390
40536	Lexington	3.4 mi	$1,450
40502	Lexington	3.7 mi	$1,370
40504	Lexington	4.9 mi	$1,190

Questions

What is the Fair Market Rent for ZIP code 40505?

HUD's FY2027 Small Area Fair Market Rents for 40505 are $840 (studio), $1,020 (1 BR), $1,200 (2 BR), $1,650 (3 BR) and $1,790 (4 BR) a month.

What is the Section 8 payment standard in 40505?

Housing agencies set payment standards between 90% and 110% of the applicable FMR without HUD approval. For a two-bedroom unit in 40505 that range is $1,080 to $1,320 if the agency uses Small Area FMRs. Ask your housing agency for its actual payment standard.

Which income limits apply in 40505?

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.