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 | $1,170 |
| 1 Bedroom | $1,270 |
| 2 Bedrooms | $1,530 |
| 3 Bedrooms | $1,950 |
| 4 Bedrooms | $2,250 |
| 5 Bedrooms | $2,610 |
| 6 Bedrooms | $2,923 |
| 7 Bedrooms | $3,157 |
| 8 Bedrooms | $3,315 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,270 | $173,044 | 0.73% | D |
| 2BR | $1,530 | $401,962 | 0.38% | F |
| 3BR | $1,950 | $364,298 | 0.54% | F |
| 4BR | $2,250 | $547,700 | 0.41% | F |
| 5BR | $2,610 | $888,306 | 0.29% | F |
U.S. Census Bureau data (2024)
The dynamics of ZIP 40222 in Louisville, KY, reveal a market in motion. The Fair Market Rent (FMR) for the area stands at $1470 for fiscal year 2024, while the actual market rent, as indicated by ZORI, is slightly lower at $1,380. This suggests that the rental market is somewhat competitive, with landlords setting rents below the benchmark to attract tenants.
A 0.3% price-cut share indicates that only a small fraction of listings have seen reductions in their asking price, which can be interpreted as a sign of stable pricing. The days on market (DOM) figure of 22 days further supports this stability, showing that properties are selling relatively quickly. However, it's important to note that these metrics alone do not definitively indicate whether supply outpaces demand or vice versa; they suggest a balanced market with slight lean towards demand.
The median home value in ZIP 40222 is $391,856, placing it in a moderate range for the region. A significant 44.9% of the population in this area are renters, indicating substantial long-term housing pressure. High renter shares often correlate with areas experiencing ongoing demand for rental properties, suggesting that a sizeable portion of the population is either unable or unwilling to purchase homes. This could be due to various factors including affordability, job mobility, or lifestyle preferences.
In summary, the current snapshot of ZIP 40222 points to a market where demand and supply are relatively balanced, but the high renter share signals persistent pressure on the rental sector. Landlords and small-portfolio investors should consider these dynamics when evaluating opportunities in the area.
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.