Location: Franklin 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 | $840 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,410 | $357,050 | 0.39% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 40076 in fiscal year 2024 is set at $1120. This figure represents the payment standard for Section 8 vouchers, which is the amount the government will pay toward your tenant's rent. It does not represent the total rent you can charge; rather, it caps the portion of the rent covered by the voucher.
In comparison, the average rent in ZIP 40076, according to the Census Bureau's American Community Survey, is $975. This suggests that while the FMR provides a reasonable subsidy, it may still leave room for landlords to charge a bit more for amenities or location advantages.
The 26.8% share of renters in the area indicates strong demand for rental properties. With such a significant portion of the population renting, there is a good chance of finding tenants who qualify for Section 8 assistance. The median home value in the area is around $313,747, which reflects the typical price for acquiring a property in this market. This high median home value could make rental properties, especially those participating in the Section 8 program, attractive options for both residents and investors looking to enter the market.
Before proceeding with a Section 8 rental, ensure that your property meets all the required standards for housing quality. The Housing Quality Standards (HQS) inspection is mandatory and must be passed for you to receive payments under the program. These standards cover basic safety and habitability criteria, so verifying compliance beforehand saves time and avoids potential complications.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.