Location: Louisville, KY | Metro: Louisville, KY-IN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $880 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
U.S. Census Bureau data (2024)
The analysis of Section 8 real estate in ZIP code 47104, Bethlehem, IN, reveals significant insights for landlords and small-portfolio investors. The Fair Market Rent (FMR) for the zip code in fiscal year 2024 is set at $1280. However, the current market rent for the area is not available, indicating a potential gap that could favor voucher tenants.
In ZIP 47104, there are no renters reported, which suggests that the majority of residents might be homeowners. This low rental rate could mean that landlords who participate in the Section 8 program can secure steady, government-backed income without the risk of market fluctuations. With no median home value or median income data available, it's clear that the housing market here is unique, likely dominated by owner-occupied homes rather than rentals.
The absence of market rent data implies that voucher tenants could fill a niche demand, providing landlords with a predictable cash flow. Given the FMR of $1280, if market rents were higher, participating in Section 8 would mean accepting lower rents, which could impact profitability. However, the lack of competition from other rental units means that landlords could still achieve a decent yield relative to the low population density and minimal business presence in the area.
While the specific gap in dollars and percentage cannot be calculated due to the unavailability of market rent figures, the analysis indicates that the Section 8 program offers a reliable source of income for property owners in ZIP 47104. This reliability is crucial given the sparse rental market and the high percentage of residents with a bachelor's degree or higher, suggesting a well-educated but potentially low-rent-seeking population.
Data Sources: FMR data from HUD (2027). 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.