FY2027 Small Area FMR · Dawson Springs, KY
ZIP 42408 Fair Market Rent & Payment Standards
HUD's FY2027 Small Area Fair Market Rent for a two-bedroom home in ZIP code 42408 (Dawson Springs, KY) is $1,220 a month, up 9.9% from FY2026. That is 7% below the Clarksville, TN-KY area-wide FMR of $1,307.
Payment standard range, 2 bedrooms
Housing agencies may set voucher payment standards anywhere from 90% to 110% of the FMR without asking HUD.
FY2027 FY2026
Where 42408 sits in the Clarksville, TN-KY area
Of the 35 ZIP codes HUD lists for the area, 42408 has the 12th highest two-bedroom Small Area FMR. Clarksville, TN-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 $1,307 for two bedrooms; an agency that opts in to Small Area FMRs would use $1,220 for this ZIP code instead.
ZIP code 42408 crosses more than one HUD area. HUD also lists it under Caldwell County, KY (same figures) and Hopkins County, KY (same figures). The figure that applies depends on which side of the line the home is.
All unit sizes
| Unit | FY2027 SAFMR | Payment standard range | Area-wide FMR | FY2026 SAFMR |
|---|---|---|---|---|
| Studio | $990 | $891 – $1,089 | $1,061 | $830 |
| 1 bedroom | $990 | $891 – $1,089 | $1,068 | $880 |
| 2 bedrooms | $1,220 | $1,098 – $1,342 | $1,307 | $1,110 |
| 3 bedrooms | $1,690 | $1,521 – $1,859 | $1,786 | $1,550 |
| 4 bedrooms | $2,040 | $1,836 – $2,244 | $2,185 | $1,860 |
A household renting a two-bedroom home at the Small Area FMR of $1,220 needs about $48,800 a year to keep housing costs at 30% of income. The area median family income is $93,800 and the 80% low-income limit for four people is $75,050. ZIP code 42408 lies mainly in Hopkins County, Caldwell County and Christian County. See the Clarksville, TN-KY metro page for the full income limits table and the household check.
Nearby ZIP codes
Questions
What is the Fair Market Rent for ZIP code 42408?
HUD's FY2027 Small Area Fair Market Rents for 42408 are $990 (studio), $990 (1 BR), $1,220 (2 BR), $1,690 (3 BR) and $2,040 (4 BR) a month.
What is the Section 8 payment standard in 42408?
Housing agencies set payment standards between 90% and 110% of the applicable FMR without HUD approval. For a two-bedroom unit in 42408 that range is $1,098 to $1,342 if the agency uses Small Area FMRs. Ask your housing agency for its actual payment standard.
Which income limits apply in 42408?
The FY2026 income limits of the Clarksville, TN-KY area apply: median family income $93,800, low-income (80%) limit $75,050 for a family of four.