I live in KY and I have an 8 yr old son and a 1 year old son, should they still be sharing a room if we live in subsidized housing?

Technically yes but they are worlds apart and need separate rooms asap.

This is subject to the rules set by the type of subsidized housing. If this is federally subsidized, then you have to look at the federal program's rules. If it is state or locally subsidized those rules apply. Best to ask your case worker.

If it is against the rules, they will have to find you new housing.

It is legal, but it may be against housing rules ( there is a difference in laws and rules)

But in an economy like today is is common for two or even four children to have to share a room. In many cases families are having to sleep in the living room or a family members home.