Location: Shelby 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 | $1,160 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $1,980 |
| 4 Bedrooms | $2,290 |
| 5 Bedrooms | $2,656 |
| 6 Bedrooms | $2,975 |
| 7 Bedrooms | $3,213 |
| 8 Bedrooms | $3,374 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,980 | $469,494 | 0.42% | F |
| 4BR | $2,290 | $594,962 | 0.38% | F |
U.S. Census Bureau data (2024)
The ZIP code 40023 presents an interesting scenario for both renters and landlords alike. The median income here stands at a robust $144,635, which initially suggests that residents have substantial financial capacity. However, when considering the market rate for rent, which is set at $1,181 according to the Census ACS, it becomes clear that the cost of living remains a significant factor.
In comparison, the voucher payment standard for this area, known as the Fair Market Rent (FMR), is pegged at $1,840 for fiscal year 2024. This means that for those who rely on housing vouchers, the rental costs are considerably higher than the market rate. Given that only 4.0% of the population are renters, and the total population is 6,870, there is a relatively low demand for rental properties. This translates into a competitive landscape for landlords, where attracting tenants might be challenging due to the limited number of potential renters.
The disparity between the median income and the actual rental costs indicates an affordability gap. While the median income is high, the market rate for rent is still a considerable expense for most households. For landlords, this implies that relying solely on cash-paying tenants could limit their pool of potential renters, given the high proportion of homeowners in the area.
The takeaway for landlords considering voucher vs. cash-pay strategies is clear: accepting housing vouchers can significantly expand their tenant base. Although the voucher payment standard exceeds the market rate, the strategy can attract a wider range of tenants, especially in a market with low rental demand. Landlords should weigh the benefits of increased occupancy against the administrative complexities of working with housing vouchers.
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.