Location: Nelson 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 | $810 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,070 | $261,752 | 0.41% | F |
| 3BR | $1,430 | $318,222 | 0.45% | F |
| 4BR | $1,760 | $431,796 | 0.41% | F |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP 40013, which includes Coxs Creek, KY, and parts of Nelson County, is set at $1230 for the fiscal year 2024. In comparison, the Census ACS reports the average market rent for the area at $722. This significant gap indicates that voucher tenants would cashflow comfortably at the HUD FMR rate, even when renting standard units without requiring premium accommodations.
To further analyze the investment potential, the median home value in ZIP 40013 is $312,228. Using this figure, we can derive the rent-to-price ratio by comparing the average market rent of $722 to the median home value. The rent-to-price ratio stands at approximately 0.26%, suggesting that rental income is relatively low compared to property values. However, this also implies that the area might be undervalued for rental properties, offering opportunities for growth.
The dynamics between renting and buying are crucial for investors. With a median Days on Market (DOM) marked as N/A and a price-cut share of just 0.3%, it's evident that the housing market in this area is stable and sellers rarely need to lower their prices. These metrics suggest a strong demand for homes and a competitive market, which can benefit both renters and buyers.
In conclusion, the strongest investor angle in ZIP 40013 is cashflow. The substantial difference between the HUD FMR and the actual market rent means that landlords can expect to see positive cashflow from voucher tenants, making it an attractive option for those looking to generate steady rental income without the need for premium unit investments.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.