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 | $1,270 |
| 1 Bedroom | $1,380 |
| 2 Bedrooms | $1,660 |
| 3 Bedrooms | $2,120 |
| 4 Bedrooms | $2,440 |
| 5 Bedrooms | $2,830 |
| 6 Bedrooms | $3,170 |
| 7 Bedrooms | $3,424 |
| 8 Bedrooms | $3,595 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,660 | $301,077 | 0.55% | F |
| 3BR | $2,120 | $361,712 | 0.59% | F |
| 4BR | $2,440 | $511,465 | 0.48% | F |
| 5BR | $2,830 | $871,572 | 0.32% | F |
U.S. Census Bureau data (2024)
With a Fair Market Rent (FMR) set at $1670 for ZIP 40223 in Louisville, KY, for fiscal year 2024, landlords can expect to align their rental prices closely with the Zillow Observed Rent Index (ZORI), which stands at $1,592. This indicates a competitive market where properties priced slightly above the ZORI may still attract tenants willing to pay closer to the FMR. The median home value in the area is $386,101, reflecting a stable housing market. However, with 27.5% of residents being renters, there is a significant portion of the population that relies on rental housing, making it a viable investment option.
$96,607 is the median income in ZIP 40223, which is an important figure for landlords to consider when setting rental prices and evaluating potential tenant incomes. The average Days on Market (DOM) is 16 days, suggesting that listings are typically attracting interest quickly and that the rental market is active. Additionally, the price-cut share is only 0.3%, indicating that landlords rarely need to reduce their asking prices to secure tenants, which is a positive sign for maintaining rental income levels.
The combination of these factors—competitive rents, a stable home value, a substantial renter population, and quick property turnover—positions ZIP 40223 favorably for landlords and small-portfolio investors. The low rate of price cuts further supports the idea that landlords can maintain higher rents without losing out on tenants. For those considering Section 8 participation, the $1670 FMR provides a clear guideline for acceptable rental rates, ensuring compliance while also maximizing potential income.
Verdict: ZIP 40223 is a solid choice for landlords interested in Section 8 participation, given the alignment between market rents and the FMR.
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.