Location: Carroll 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 | $760 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,280 | $272,679 | 0.47% | F |
U.S. Census Bureau data (2024)
The ZIP code 40075 encompasses a small residential area with a total population of 1,151. Only 14.1% of the residents are renters, indicating a predominantly owner-occupied community. The median household income in this area stands at $64,375, which suggests a middle-class demographic. Median home values are relatively high at $241,393, reflecting the stable and possibly affluent nature of homeownership.
From an investment perspective, the Federal Market Rent (FMR) for ZIP 40075 in fiscal year 2024 is set at $1110, significantly higher than the reported market rent of $675 based on Census ACS data. This disparity highlights a potential opportunity for landlords and investors who can capitalize on the higher subsidy rates offered through the Section 8 program.
Given these economic factors, ZIP 40075 would be well-suited for a hands-off voucher operator due to the high FMR compared to the actual market rent. Landlords could benefit from the guaranteed rental income without having to actively manage properties or engage in significant renovations. However, it also presents an opportunity for a hands-on value-add buyer who could potentially increase property values and rents over time, taking advantage of the strong underlying demand supported by Section 8 subsidies.
In conclusion, ZIP 40075 offers a balanced environment where both passive and active real estate strategies can thrive. The combination of a moderate renter population and favorable Section 8 rates makes it an attractive location for investors looking to enter the rental market with minimal risk or those seeking to enhance their portfolio through strategic improvements.
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.