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 | $780 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $176,272 | 0.57% | F |
| 3BR | $1,300 | $220,957 | 0.59% | F |
U.S. Census Bureau data (2024)
The ZIP code 40050, located in New Castle, KY, is home to a population of 2,045 residents. With 22.6% of the population being renters, it indicates that while there is a significant portion of tenants, it is not overwhelmingly dominated by renters. The median household income stands at $44,688, which is an important figure when considering the financial capabilities of potential tenants.
The market rent in this area is $722 per month, which represents approximately 19.7% of the median household income. This percentage suggests that typical rents are relatively affordable compared to the average income level. However, it's worth noting that the Fair Market Rent (FMR) for the area, set at $1070 for FY 2024, is higher than the current market rent. This discrepancy highlights that the actual rent charged is below the threshold that HUD considers fair, potentially indicating a competitive rental market with a variety of options for tenants.
The presence of Section 8 vouchers in this area can be assessed by comparing the market rent to the FMR. Given that the market rent is significantly lower than the FMR, it suggests that there could be a substantial number of tenants using Section 8 vouchers, as they might find the cost of living more manageable here. Landlords in this ZIP code can expect a tenant pool that includes individuals and families relying on housing assistance to meet their monthly rental obligations.
To conclude, landlords in ZIP 40050 should anticipate a mix of tenants, including those who utilize Section 8 vouchers. These tenants will likely be from households earning around the median income or less, making up a significant portion of the rental market. It's crucial for landlords to understand the dynamics of this market and the importance of adhering to Section 8 regulations to attract and retain tenants effectively.
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.