Section 8 Fair Market Rent (FMR) for ZIP 40213 - 2027
Location: Louisville, KY | Metro: Louisville, KY-IN HUD Metro FMR Area
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $850 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$55,897
Housing Authorities Serving ZIP 40213
In ZIP 40213, a skeptical investor might raise several concerns regarding the feasibility of renting out a property using Section 8 vouchers. Here are some key objections and the corresponding data to address them.
- Will FMR $1,190 (zip FY 2024) cover the mortgage on a $209,388 home? The FMR for a two-bedroom apartment in ZIP 40213 for 2024 is $1,190. To determine whether this covers the mortgage, we need to look at the typical interest rates and loan terms. With current average interest rates around 5%, the monthly mortgage payment on a $209,388 home would be approximately $1,100, assuming a 30-year fixed-rate mortgage. Therefore, the FMR does cover the mortgage payment, leaving a small margin for other expenses such as maintenance and insurance.
- Is there enough renter demand at 34.9%? The 34.9% renter occupancy rate suggests that a significant portion of the housing stock is rented out. However, it does not directly indicate the demand for Section 8 rentals. To gauge demand, we would need to examine the number of active Section 8 vouchers in circulation and the waiting list length. Unfortunately, the data provided does not include these specifics. The occupancy rate alone does not guarantee sufficient demand for Section 8 properties.
- Will vouchers keep pace with $1,474 market rents? The average market rent for a two-bedroom apartment in ZIP 40213 is $1,474, which is higher than the FMR of $1,190. This means that landlords may have to subsidize the difference between the FMR and the actual market rent. However, the voucher amount is adjusted annually based on the HUD Fair Market Rent. In 2024, the FMR has increased significantly compared to previous years, indicating a trend towards keeping pace with market rents. For instance, in 2020, the FMR was $860, and by 2024, it has risen to $1,190, showing a positive trajectory.
The data clearly shows that while the FMR covers the mortgage on a $209,388 home, it falls short of the market rent, necessitating a subsidy from landlords. The renter demand is present but requires further investigation into the specifics of Section 8 voucher distribution and waiting lists to confirm the viability of these rentals.
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.