Location: Louisville, 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 | $1,030 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,710 |
| 4 Bedrooms | $1,970 |
| 5 Bedrooms | $2,285 |
| 6 Bedrooms | $2,559 |
| 7 Bedrooms | $2,764 |
| 8 Bedrooms | $2,902 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,340 | $363,892 | 0.37% | F |
| 3BR | $1,710 | $409,442 | 0.42% | F |
| 4BR | $1,970 | $543,732 | 0.36% | F |
| 5BR | $2,285 | $742,613 | 0.31% | F |
U.S. Census Bureau data (2024)
With a $1420 Fair Market Rent (FMR) for zip code 40205 in Louisville, KY, landlords must be aware of the subsidized rental market. The $1,582 Zillow Observed Rental Index (ZORI) indicates that market rents are slightly higher than the FMR, suggesting a competitive environment. The median home value stands at $381,910, which is a significant investment for property owners. Given that 25.6% of residents are renters, there is a notable demand for rental properties. However, the median income of $99,966 suggests that many households might find it challenging to afford market rents without assistance. Properties in this area typically spend 44 days on the market before securing a tenant, indicating a moderate vacancy period. A low 0.3% price-cut share shows that landlords generally do not need to reduce their asking rents significantly to attract tenants. In conclusion, for those interested in Section 8 participation, the data points towards a balanced opportunity where the FMR closely aligns with the lower end of market rents, making it viable for landlords to engage in the program while still achieving reasonable occupancy rates.
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.