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 | $990 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,660 |
| 4 Bedrooms | $1,910 |
| 5 Bedrooms | $2,216 |
| 6 Bedrooms | $2,482 |
| 7 Bedrooms | $2,681 |
| 8 Bedrooms | $2,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,300 | $201,909 | 0.64% | D |
| 3BR | $1,660 | $239,925 | 0.69% | D |
| 4BR | $1,910 | $279,216 | 0.68% | D |
U.S. Census Bureau data (2024)
ZIP code 40258 in Louisville, Kentucky, stands out within Jefferson County due to its unique demographic and economic characteristics. With a population of 26,841 residents, 26.1% of whom are renters, this area has a median household income of $68,162. The median home value in ZIP 40258 is notably high at $224,517, reflecting the relatively affluent nature of the neighborhood.
The dynamics of rental housing in ZIP 40258 are particularly interesting when considering the Section 8 program. The Fair Market Rent (FMR) for the area for fiscal year 2024 is set at $1,290, which is significantly lower than the market rate of $1,495 as indicated by the ZORI (Zillow Rent Index). This gap suggests that landlords who accept Section 8 vouchers in this ZIP code may need to be selective about their properties to ensure they are competitive with market rates while still receiving the government subsidy.
Given the data, ZIP 40258 appears to be a stable area. Its higher median income and home values indicate a solid economic foundation, while the modest percentage of renters suggests a mix of homeowners and tenants. The consistent disparity between FMR and ZORI over time implies a steady demand for affordable housing options, making it a reliable market for landlords and small-portfolio investors who choose to participate in the Section 8 program. However, the data also hints at transitional elements, as the market continues to adjust to the balance between subsidized and non-subsidized rents.
In summary, ZIP 40258 presents a stable yet evolving landscape for those interested in Section 8 investments. Landlords should carefully consider the property's location and amenities to attract both voucher holders and market-rate tenants, ensuring a balanced and profitable portfolio.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.