FY2027 Small Area FMR · Lexington, KY

ZIP 40516 Fair Market Rent & Payment Standards

HUD's FY2027 Small Area Fair Market Rent for a two-bedroom home in ZIP code 40516 (Lexington, KY) is $1,390 a month, up 6.9% from FY2026. That is 2% below the Lexington-Fayette, KY area-wide FMR of $1,416.

2-bedroom SAFMR$1,390per month ▲ 6.9%

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

Rank in the area32ndof 57 ZIP codes

Payment standard range, 2 bedrooms

90% of SAFMR$1,251

2 BR Small Area FMR$1,390

110% of SAFMR$1,529

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

Studio$970▲ 7.8%

1 BR$1,180▲ 7.3%

2 BR$1,390▲ 6.9%

3 BR$1,910▲ 7.3%

4 BR$2,070▲ 4.5%

FY2027 FY2026

Where 40516 sits in the Lexington-Fayette, KY area

Of the 57 ZIP codes HUD lists for the area, 40516 has the 32nd 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 $1,390 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	$970	$873 – $1,067	$986	$900
1 bedroom	$1,180	$1,062 – $1,298	$1,205	$1,100
2 bedrooms	$1,390	$1,251 – $1,529	$1,416	$1,300
3 bedrooms	$1,910	$1,719 – $2,101	$1,948	$1,780
4 bedrooms	$2,070	$1,863 – $2,277	$2,108	$1,980

A household renting a two-bedroom home at the Small Area FMR of $1,390 needs about $55,600 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 40516 lies mainly in Fayette County and Bourbon 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
40505	Lexington	5.1 mi	$1,200
40509	Lexington	5.2 mi	$1,760
40526	Lexington	6.6 mi	$1,390
40511	Lexington	7.1 mi	$1,560
40507	Lexington	7.4 mi	$1,230
40502	Lexington	7.7 mi	$1,370

Questions

What is the Fair Market Rent for ZIP code 40516?

HUD's FY2027 Small Area Fair Market Rents for 40516 are $970 (studio), $1,180 (1 BR), $1,390 (2 BR), $1,910 (3 BR) and $2,070 (4 BR) a month.

What is the Section 8 payment standard in 40516?

Housing agencies set payment standards between 90% and 110% of the applicable FMR without HUD approval. For a two-bedroom unit in 40516 that range is $1,251 to $1,529 if the agency uses Small Area FMRs. Ask your housing agency for its actual payment standard.

Which income limits apply in 40516?

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.