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 | $1,190 |
| 1 Bedroom | $1,290 |
| 2 Bedrooms | $1,550 |
| 3 Bedrooms | $1,980 |
| 4 Bedrooms | $2,280 |
| 5 Bedrooms | $2,645 |
| 6 Bedrooms | $2,962 |
| 7 Bedrooms | $3,199 |
| 8 Bedrooms | $3,359 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,550 | $359,241 | 0.43% | F |
| 3BR | $1,980 | $424,093 | 0.47% | F |
| 4BR | $2,280 | $590,411 | 0.39% | F |
| 5BR | $2,645 | $944,753 | 0.28% | F |
U.S. Census Bureau data (2024)
The ZIP code 40207 in Louisville, KY, stands out within Jefferson County due to its unique demographic and economic characteristics. With a total population of 28,903, it has a rental rate of 30.9%, slightly above the national average. The median household income in this area is $101,898, reflecting a relatively affluent community. However, the median home value of $422,529 indicates that homeownership is quite expensive compared to other parts of the city.
Moving to the specifics of Section 8 housing, the Fair Market Rent (FMR) for ZIP 40207 in fiscal year 2024 is set at $1,560. This figure is notably higher than the market rent, which is measured by the Zillow Rent Index (ZORI) at $1,398. This discrepancy suggests that landlords participating in the Section 8 program can expect to receive slightly more than the typical market rent for their properties, making it an attractive option despite the administrative overhead.
The data signature for ZIP 40207 reads as stable. The high median income supports a robust local economy, while the higher FMR compared to the market rent indicates a well-adjusted subsidy level that could sustain steady demand from tenants. Landlords should be aware of the potential for transitional dynamics if there are significant changes in the local economy or housing market, but based on current data, the environment appears conducive to long-term investment in Section 8 properties.
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.