Section 8 Fair Market Rent (FMR) for ZIP 40210 - 2027

Location: Louisville, KY | Metro: Louisville, KY-IN HUD Metro FMR Area

Investment Score for ZIP 40210

Monthly Rent (2BR)

$1,130

Median Price (2BR)

$85,913

1% Rule

1.32%

Annual Yield

15.78%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

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

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$940	$68,153	1.38%	A
2BR	$1,130	$85,913	1.32%	A
3BR	$1,440	$109,146	1.32%	A
4BR	$1,660	$134,918	1.23%	A

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

13,518

Median Household Income

$35,347

Housing Units

7,041

Renter Percentage

56.0%

Occupancy Rate

79.7%

Renter Occupied

3,142

When evaluating whether to invest in ZIP 40210 (Louisville, KY) for Section 8 properties, consider the following decision tree based on the data provided.

1) Does the Fair Market Rent (FMR) of $1160 cover the debt service on a property valued at $91,991?

Yes: The FMR of $1160 is sufficient to cover the debt service on a property valued at $91,991. This ensures that the rental income will meet the financial obligations associated with owning the property.
No: The FMR of $1160 does not cover the debt service on a property valued at $91,991. In this case, the investment would likely result in financial losses.

2) How does the market rent ($1,201 ZORI) compare to the FMR?

Above FMR: The market rent of $1,201 is above the FMR of $1160. Landlords can potentially charge higher rents to non-Section 8 tenants, increasing overall profitability.
At or Below FMR: The market rent of $1,201 is close to the FMR of $1160. Landlords may face challenges in attracting non-Section 8 tenants willing to pay above the FMR, limiting potential for higher rents.

3) Is there enough demand with 56.0% renters and N/A-day days on the market (DOM)?

It Depends: ZIP 40210 has a high percentage of renters at 56.0%. However, the lack of data on days on the market (DOM) makes it difficult to assess the speed at which properties are rented out. High demand could be indicative of a robust rental market, but without knowing how quickly units become occupied, it's challenging to determine if the investment will be profitable.

To summarize, if the FMR of $1160 clears the debt service on a property valued at $91,991, then the answer is Yes. If the market rent is above the FMR, it increases the potential for higher profitability. Given the high percentage of renters, the demand appears strong, but the absence of DOM data means that the final decision hinges on additional information about rental speed.

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.