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 | $1,190 |
| 1 Bedroom | $1,290 |
| 2 Bedrooms | $1,560 |
| 3 Bedrooms | $1,990 |
| 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 |
|---|---|---|---|---|
| 2BR | $1,560 | $324,775 | 0.48% | F |
| 3BR | $1,990 | $313,910 | 0.63% | D |
| 4BR | $2,290 | $535,101 | 0.43% | F |
U.S. Census Bureau data (2024)
ZIP code 40056, located in Pewee Valley, KY, falls within the Shelby County, KY HUD Metro FMR Area. Its Fair Market Rent (FMR) for FY 2024 is set at $1,590, slightly below the market rent of $1,648. The median home value in ZIP 40056 is $360,427, which is relatively consistent with other ZIP codes in the area.
The renter share in Pewee Valley is 7.5%, indicating a smaller proportion of renters compared to homeowners. This figure can be used to infer the market dynamics within the ZIP code. Typically, a lower renter share suggests fewer opportunities for rental properties, but in the context of Section 8, it can signal a less competitive environment for landlords who qualify for the program.
When comparing these figures to typical ZIP codes within the Shelby County, KY HUD Metro FMR Area, we see that Pewee Valley's FMR and market rent are closely aligned, suggesting a balanced rental market. However, the median home value is on par with the broader county average, implying that Pewee Valley is neither significantly undervalued nor overvalued relative to its peers.
The 7.5% renter share in ZIP 40056 is noteworthy because it is lower than what might be expected in a more densely populated urban area. In the context of Section 8, this lower renter share combined with a home value that is typical for the area suggests that Pewee Valley could be considered a value pocket. Landlords here would likely face less competition for rental properties while still benefiting from the program's financial support.
In summary, ZIP 40056 presents itself as a value pocket within the Shelby County, KY HUD Metro FMR Area. It offers a stable rental market with a slightly below-average FMR and market rent, typical home values, and a lower-than-average renter share, making it an attractive option for landlords participating in the Section 8 program.
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.