FY2027 Small Area FMR · Lexington, KY

ZIP 40507 Fair Market Rent & Payment Standards

HUD's FY2027 Small Area Fair Market Rent for a two-bedroom home in ZIP code 40507 (Lexington, KY) is $1,230 a month, up 7.0% from FY2026. That is 13% below the Lexington-Fayette, KY area-wide FMR of $1,416.

2-bedroom SAFMR$1,230per month ▲ 7.0%

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

Rank in the area42ndof 57 ZIP codes

Payment standard range, 2 bedrooms

90% of SAFMR$1,107

2 BR Small Area FMR$1,230

110% of SAFMR$1,353

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

Studio$860▲ 7.5%

1 BR$1,050▲ 7.1%

2 BR$1,230▲ 7.0%

3 BR$1,690▲ 7.0%

4 BR$1,830▲ 4.6%

FY2027 FY2026

Where 40507 sits in the Lexington-Fayette, KY area

Of the 57 ZIP codes HUD lists for the area, 40507 has the 42nd 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 $1,230 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	$860	$774 – $946	$986	$800
1 bedroom	$1,050	$945 – $1,155	$1,205	$980
2 bedrooms	$1,230	$1,107 – $1,353	$1,416	$1,150
3 bedrooms	$1,690	$1,521 – $1,859	$1,948	$1,580
4 bedrooms	$1,830	$1,647 – $2,013	$2,108	$1,750

A household renting a two-bedroom home at the Small Area FMR of $1,230 needs about $49,200 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 40507 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
40536	Lexington	1.2 mi	$1,450
40508	Lexington	1.3 mi	$1,390
40526	Lexington	1.9 mi	$1,390
40505	Lexington	2.3 mi	$1,200
40502	Lexington	2.6 mi	$1,370
40504	Lexington	2.6 mi	$1,190

Questions

What is the Fair Market Rent for ZIP code 40507?

HUD's FY2027 Small Area Fair Market Rents for 40507 are $860 (studio), $1,050 (1 BR), $1,230 (2 BR), $1,690 (3 BR) and $1,830 (4 BR) a month.

What is the Section 8 payment standard in 40507?

Housing agencies set payment standards between 90% and 110% of the applicable FMR without HUD approval. For a two-bedroom unit in 40507 that range is $1,107 to $1,353 if the agency uses Small Area FMRs. Ask your housing agency for its actual payment standard.

Which income limits apply in 40507?

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.