Location: Louisville, 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 | $870 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,140 | $247,576 | 0.46% | F |
| 3BR | $1,460 | $309,204 | 0.47% | F |
| 4BR | $1,670 | $417,722 | 0.4% | F |
| 5BR | $1,937 | $488,494 | 0.4% | F |
U.S. Census Bureau data (2024)
The potential pitfalls for a Section 8 landlord in ZIP 40047, Mount Washington, KY, include significant tenant turnover due to the disparity between the market rent of $1,475 and the Fair Market Rent (FMR) of $1,200 for FY 2024. This difference can lead to frequent changes in occupancy, which increases administrative burdens and costs associated with tenant screening and move-in procedures. Additionally, there is an elevated risk of vacancy exposure, as the average days on market (DOM) stands at 35 days, indicating that properties may remain unoccupied longer than desirable. The typical home value of $324,493 combined with a median income of $99,124 suggests that landlords might face deferred maintenance issues, as tenants may have limited funds available for repairs beyond their basic living expenses.
However, these risks are tempered by the high concentration of renters in the area, with 11.2% of residents classified as renters. High renter density generally correlates with higher demand for housing vouchers, which can stabilize occupancy rates and reduce vacancy periods. Despite the challenges posed by tenant turnover and potential maintenance backlogs, the robust presence of renters in ZIP 40047 offers a counterbalance to these concerns, making it a viable option for landlords willing to navigate the complexities of the Section 8 program.
Moderate risk for a first-time Section 8 landlord.
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.