Location: Louisville, KY | Metro: Louisville, KY-IN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $860 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
U.S. Census Bureau data (2024)
In ZIP code 40209, there are several factors that could negatively impact a Section 8 investment. Firstly, tenant turnover is a significant concern. The market rent stands at $984, which is notably lower than the Fair Market Rent (FMR) of $1200 for fiscal year 2024. This gap suggests that tenants might be more likely to leave when they find higher-paying jobs or better rental opportunities, leading to frequent vacancies.
Vacancy exposure is another critical issue. With the days on market (DOM) being listed as N/A, it's unclear how quickly properties can be filled. High DOM values can indicate difficulty in finding tenants, which increases financial risk due to potential periods without rental income.
The deferred maintenance exposure is also considerable. Given the typical home value of $124,134 and an N/A median income, landlords must be prepared for possible underfunding of maintenance needs. Section 8 properties often face challenges in securing the necessary funds for upkeep, which can lead to costly repairs down the line if not addressed promptly.
However, these risks must be weighed against the high renter share in the area. At 51.8%, a significant portion of residents are renters, which typically translates into higher demand for rental housing. This high demand usually means a greater number of individuals seeking housing through Section 8 vouchers, potentially stabilizing occupancy rates.
In conclusion, despite the potential pitfalls, the high renter share provides a buffer against some of the risks. However, the uncertainty around median income and days on market, coupled with the lower market rent compared to FMR, suggests a moderate risk for a first-time Section 8 landlord in ZIP 40209.
Data Sources: FMR data from HUD (2027). 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.