Location: Louisville, KY | Metro: Louisville, KY-IN HUD Metro FMR Area
| 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 |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 40058 in fiscal year 2024 is set at $1070. This figure represents the payment standard for Section 8 rentals in this area, meaning it is the maximum amount the Housing Choice Voucher program will pay toward a tenant's rent. It is important to note that this is not the rent you should charge your tenants; rather, it is the ceiling for the government subsidy.
Local median rents are currently N/A, which makes direct comparison challenging. However, given that 52.0% of the residents in this ZIP code are renters, there is a substantial demand for rental properties. This high percentage indicates a robust market for rentals, suggesting that if your property is priced appropriately below the FMR, you can attract tenants who qualify for the Section 8 program.
The acquisition cost for properties in this ZIP code is also listed as N/A. This suggests that recent sales data might be limited, making it difficult to assess the average price of homes or apartments. Landlords and small-portfolio investors should conduct thorough research on recent property values in the area to ensure they are making a sound investment decision.
Before proceeding with a Section 8 rental in ZIP 40058, you must verify that your property meets all the necessary inspection criteria. The Housing Quality Standards (HQS) are stringent and cover everything from structural integrity to safety features. Failure to meet these standards can result in your property being ineligible for the program, even if it is otherwise a good fit.
In summary, with an FMR of $1070 and a significant portion of residents being renters, there is potential for landlords to benefit from the Section 8 program. However, the lack of specific local median rent and acquisition cost data means you should do additional due diligence to understand the market better. Most importantly, ensure your property complies with HQS to avoid any complications.
Data Sources: FMR data from HUD (2027). 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.