Location: Louisville, KY | Metro: Louisville, KY-IN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,020 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,330 |
| 3 Bedrooms | $1,700 |
| 4 Bedrooms | $1,950 |
| 5 Bedrooms | $2,262 |
| 6 Bedrooms | $2,533 |
| 7 Bedrooms | $2,736 |
| 8 Bedrooms | $2,873 |
U.S. Census Bureau data (2024)
The average market rent in ZIP 40010 is $1,219. This is significantly lower than the Fair Market Rent (FMR) set by HUD for the same area, which is $1,400 for fiscal year 2024. The gap between the FMR and market rent is $181, or approximately 13%.
In ZIP 40010, where the median home value stands at $503,386 and the median income is $196,125, the 27.8% of residents who are renters face a notable discrepancy. Given that the FMR exceeds the market rent, landlords can leverage this difference to attract voucher tenants, thereby ensuring a steady income stream that aligns closely with the FMR. This makes the area a favorable yield play for landlords willing to accept housing vouchers.
The rental market in 40010 is currently described as COOL, indicating a lower demand relative to the national average. However, the presence of voucher tenants can mitigate this risk, providing a stable source of revenue that outpaces the open-market rate. Landlords should be aware that accepting voucher tenants might involve additional administrative tasks but ensures compliance with HUD standards and a reliable income source.
Data Sources: FMR data from HUD (2027). 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.