Section 8 Fair Market Rent (FMR) for ZIP 40215 - 2027

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

Investment Score for ZIP 40215

Monthly Rent (2BR)

$1,220

Median Price (2BR)

$132,476

1% Rule

0.92%

Annual Yield

11.05%

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	$930
1 Bedroom	$1,010
2 Bedrooms	$1,220
3 Bedrooms	$1,560
4 Bedrooms	$1,790
5 Bedrooms	$2,076
6 Bedrooms	$2,325
7 Bedrooms	$2,511
8 Bedrooms	$2,637

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	$1,010	$109,929	0.92%	C
2BR	$1,220	$132,476	0.92%	C
3BR	$1,560	$165,237	0.94%	C
4BR	$1,790	$178,704	1%	B

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

20,532

Median Household Income

$43,725

Housing Units

9,154

Renter Percentage

56.4%

Occupancy Rate

89.7%

Renter Occupied

4,626

The Fair Market Rent (FMR) for ZIP 40215 in Louisville, KY for fiscal year 2024 is set at $1,200 for a one-bedroom unit. This figure raises several concerns for potential investors.

Will FMR $1,200 cover the mortgage on a $138,162 home? Yes, it will. Assuming a fixed-rate mortgage at a 4% interest rate over a 30-year term, the monthly mortgage payment for a $138,162 home would be approximately $678. With an FMR of $1,200, the rent collected would comfortably cover the mortgage and provide additional income for maintenance and property management costs.
Is there enough renter demand at 56.4%? The 56.4% occupancy rate indicates that there is significant demand for rental properties in ZIP 40215. While this percentage might seem low to some, it actually reflects a healthy balance between supply and demand. According to recent listings, properties in this area are priced competitively, suggesting that the market can support these rates. However, specific data on the vacancy rate and competition among landlords would provide a clearer picture of the market's health.
Will vouchers keep pace with $1,257 market rents? The Housing Choice Voucher program, which determines payment standard amounts based on Fair Market Rents, should cover a substantial portion of the market rent. In ZIP 40215, the payment standard for a one-bedroom unit is expected to be around $1,200, which is slightly below the market rent of $1,257. This means that tenants using vouchers would likely need to contribute the difference out-of-pocket. It's important to note that the voucher amount can vary depending on the tenant's income, so some may pay closer to the full market rent.

Investors must also consider that the FMR is subject to annual adjustments by HUD, and while it generally aligns with market trends, it may not always fully reflect the current market conditions. Therefore, staying informed about local real estate trends is crucial for maintaining profitability.

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.