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 | $1,130 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $1,890 |
| 4 Bedrooms | $2,170 |
| 5 Bedrooms | $2,517 |
| 6 Bedrooms | $2,819 |
| 7 Bedrooms | $3,045 |
| 8 Bedrooms | $3,197 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,480 | $292,177 | 0.51% | F |
| 3BR | $1,890 | $351,074 | 0.54% | F |
| 4BR | $2,170 | $418,503 | 0.52% | F |
U.S. Census Bureau data (2024)
The ZIP code 40243 in Louisville, KY, is a moderately renter-heavy area, with 36.9% of the population renting their homes. This translates to approximately 4,424 renters out of the total population of 12,002. The presence of a significant number of renters suggests that there could be substantial demand for housing vouchers under the Section 8 program. However, the exact availability of vouchers can vary based on funding and local policies.
The median household income in ZIP 40243 stands at $77,587, which is relatively high compared to the national average. Despite this, the typical market rent of $1,456 represents about 19% of the median income. This means that rent consumes a considerable portion of the average resident's earnings, potentially making rental assistance programs like Section 8 attractive to many tenants.
To put this into perspective, the Fair Market Rent (FMR) for ZIP 40243, as set by HUD for FY 2024, is $1,630. This indicates that the current market rent is slightly below the FMR, suggesting that landlords might have some flexibility in pricing their units without exceeding the voucher limits.
A landlord in ZIP 40243 should anticipate a tenant pool that includes individuals and families who rely on Section 8 vouchers to afford housing. These tenants will likely be seeking units that offer a balance between affordability and quality. Given the local median income and the current market rent, landlords can expect tenants who value their housing but also have the means to contribute to higher-quality living spaces through their rental payments.
In conclusion, while ZIP 40243 has a sizeable renter population, it is not dominated by homeowners. The demand for rental assistance is present, driven by the high cost of living relative to incomes. Landlords should prepare for tenants who benefit from Section 8 vouchers, ensuring compliance with federal guidelines and maintaining properties that meet the expectations of those with moderate to low-income backgrounds.
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.