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 | $890 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,510 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,510 | $300,797 | 0.5% | F |
U.S. Census Bureau data (2024)
The ZIP code 47114 has a population of 484 individuals, with 21.0% of them being renters. This indicates that while there is a segment of the population that rents, it is not a renter-heavy area. The median household income in this ZIP code is $103,427, which is relatively high compared to national averages.
The typical market rent in ZIP 47114 is $848. To put this into perspective, this amount represents approximately 8.2% of the median household income. This suggests that rent is a manageable expense for most households in the area, indicating that tenants are likely to have stable financial situations and be capable of meeting their rental obligations.
When comparing the market rent to the Fair Market Rent (FMR), which is set at $1410 for fiscal year 2024, it becomes evident that the market rent is significantly below the FMR. This discrepancy implies that landlords might struggle to cover costs and maintain properties solely on the basis of market rents without additional subsidies or higher-paying tenants.
The kind of tenant profile a landlord should expect in ZIP 47114 includes individuals who are financially secure and can afford the cost of living in an area with higher median incomes. These tenants are likely to be employed in stable jobs, possibly in professional fields given the income levels. They may also include families looking for affordable housing options, where the $848 market rent could be attractive compared to the higher FMR.
Given the 21.0% renter rate, landlords should not rely heavily on Section 8 vouchers as a primary source of tenants. Instead, they should focus on attracting a mix of tenants, including those who might benefit from vouchers and those who can pay market rates. Landlords must be prepared to offer competitive amenities and maintain high property standards to attract and retain tenants in this 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.