Location: Trimble 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 | $1,050 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,400 |
| 3 Bedrooms | $1,750 |
| 4 Bedrooms | $2,030 |
| 5 Bedrooms | $2,355 |
| 6 Bedrooms | $2,638 |
| 7 Bedrooms | $2,849 |
| 8 Bedrooms | $2,991 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,750 | $362,893 | 0.48% | F |
U.S. Census Bureau data (2024)
The analysis for the Section 8 program in ZIP code 40055 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1440, while the Census ACS data indicates a market rent of $1348. This means that the FMR exceeds the market rent by $92, or approximately 6.8%. Such a scenario presents an opportunity for landlords and small-portfolio investors to participate in a yield play by renting to voucher tenants.
The higher FMR allows landlords to potentially charge closer to the $1440 benchmark, which is above the open-market rate of $1348. This can result in a higher rental income per unit compared to what they might receive from non-voucher tenants. However, it's important to consider the broader economic context of ZIP 40055 when making investment decisions. The area has a relatively low percentage of renters at 14.3%, suggesting a smaller pool of potential voucher tenants. Additionally, the median home value is high at $343,522, indicating a robust housing market that could be competitive for rental properties.
The median income in the area stands at $97,939, which is substantial but also implies that many residents may have the financial capacity to purchase homes rather than rent. Despite these factors, the yield play remains attractive because landlords can secure a guaranteed income stream through the Section 8 program, which often covers the full rent amount. This can provide stability and predictability in rental income, even if the number of voucher tenants is limited.
To summarize, the gap between the FMR and market rent in ZIP 40055 makes it a favorable environment for landlords who wish to maximize their rental yields by participating in the Section 8 program. The higher FMR allows for rents above the market average, thus providing an opportunity for increased profitability.
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.