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 | $850 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,110 | $235,448 | 0.47% | F |
| 3BR | $1,420 | $367,853 | 0.39% | F |
| 4BR | $1,630 | $476,791 | 0.34% | F |
U.S. Census Bureau data (2024)
Taylorsville, KY, located in ZIP code 40071 within the Shelby County HUD Metro FMR Area, presents a unique opportunity for inclusion in a Section 8 portfolio strategy. This area is best suited as a cash-flow anchor.
The Federal Market Rent (FMR) for ZIP 40071 in fiscal year 2024 is set at $1050. Comparatively, the market rent stands at $960, indicating a positive spread of $90 per unit. This means that landlords participating in the Section 8 program can expect higher rental income than what the market would typically offer, thereby enhancing cash flow stability.
Moreover, the median home value in Taylorsville is $364,026, which suggests a relatively stable housing market. The low price-cut share of 0.2% and a Days on Market (DOM) of 27 days further supports the idea of a steady market where properties are sold quickly without significant discounts. These factors contribute to the predictability and reliability of cash flows in this region.
Additionally, the renter share in Taylorsville is 13.1%, indicating a moderate demand for rental properties. With a median income of $98,528, residents have the financial capacity to afford higher rents, making it feasible for landlords to maintain Section 8 contracts without the risk of default. The combination of these elements—market conditions, income levels, and renter demographics—positions Taylorsville as a solid cash-flow anchor for a Section 8 portfolio.
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.