FY2027 Small Area FMR · Lexington, KY

ZIP 40517 Fair Market Rent & Payment Standards

HUD's FY2027 Small Area Fair Market Rent for a two-bedroom home in ZIP code 40517 (Lexington, KY) is $1,490 a month, up 7.2% from FY2026. That is 5% above the Lexington-Fayette, KY area-wide FMR of $1,416.

2-bedroom SAFMR$1,490per month ▲ 7.2%

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

Rank in the area8thof 57 ZIP codes

Payment standard range, 2 bedrooms

90% of SAFMR$1,341

2 BR Small Area FMR$1,490

110% of SAFMR$1,639

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

Studio$1,040▲ 8.3%

1 BR$1,270▲ 7.6%

2 BR$1,490▲ 7.2%

3 BR$2,050▲ 7.9%

4 BR$2,220▲ 4.7%

FY2027 FY2026

Where 40517 sits in the Lexington-Fayette, KY area

Of the 57 ZIP codes HUD lists for the area, 40517 has the 8th 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 $1,490 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	$1,040	$936 – $1,144	$986	$960
1 bedroom	$1,270	$1,143 – $1,397	$1,205	$1,180
2 bedrooms	$1,490	$1,341 – $1,639	$1,416	$1,390
3 bedrooms	$2,050	$1,845 – $2,255	$1,948	$1,900
4 bedrooms	$2,220	$1,998 – $2,442	$2,108	$2,120

A household renting a two-bedroom home at the Small Area FMR of $1,490 needs about $59,600 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 40517 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
40502	Lexington	2.0 mi	$1,370
40503	Lexington	2.9 mi	$1,450
40526	Lexington	3.3 mi	$1,390
40536	Lexington	3.5 mi	$1,450
40514	Lexington	4.0 mi	$1,980
40507	Lexington	4.4 mi	$1,230

Questions

What is the Fair Market Rent for ZIP code 40517?

HUD's FY2027 Small Area Fair Market Rents for 40517 are $1,040 (studio), $1,270 (1 BR), $1,490 (2 BR), $2,050 (3 BR) and $2,220 (4 BR) a month.

What is the Section 8 payment standard in 40517?

Housing agencies set payment standards between 90% and 110% of the applicable FMR without HUD approval. For a two-bedroom unit in 40517 that range is $1,341 to $1,639 if the agency uses Small Area FMRs. Ask your housing agency for its actual payment standard.

Which income limits apply in 40517?

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.