Location: Washington County, KY | Metro: Louisville, KY-IN HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,030 | $204,010 | 0.5% | F |
| 3BR | $1,310 | $284,731 | 0.46% | F |
| 4BR | $1,620 | $341,918 | 0.47% | F |
U.S. Census Bureau data (2024)
The real estate market in Bloomfield, KY (ZIP 40008), presents a nuanced landscape for both landlords and small-portfolio investors. With a median home value of $260,366, the area maintains a stable foundation that supports consistent investment opportunities. The fact that the percentage of listings reduced is currently not available suggests that there has been little downward pressure on property values, implying that sellers are holding firm to their asking prices. This, combined with the unreported median days on market (DOM), indicates a balanced market where neither buyers nor sellers have significant leverage.
On the rental side, the Federal Market Rent (FMR) for ZIP 40008 in fiscal year 2024 is set at $1090, which is notably higher than the current market rent of $810 according to Census ACS data. This gap signals potential upward pressure on rental rates, aligning with a broader trend of increasing demand for affordable housing. Landlords can expect to see rental income rise closer to the FMR levels as the market adjusts, providing an opportunity to improve cash flow without significantly increasing vacancy rates.
For long-term investors, the setup in ZIP 40008 implies a moderate appreciation thesis. While rapid price increases are unlikely given the current balance between buyer and seller power, steady growth in property values is probable. The combination of stable home prices and a growing rental market suggests that long-hold investors can anticipate a gradual increase in asset value, alongside rising rental incomes, creating a solid foundation for capital appreciation and income generation.
The market dynamics in Bloomfield present a scenario where maintaining properties in good condition and positioning them competitively in terms of both price and amenities will be key to capturing the full potential of the market. Investors should prepare for a period where rental income will likely grow faster than property values, offering a compelling case for those focused on cash flow rather than quick flips.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.