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 | $1,120 |
| 1 Bedroom | $1,220 |
| 2 Bedrooms | $1,470 |
| 3 Bedrooms | $1,880 |
| 4 Bedrooms | $2,160 |
| 5 Bedrooms | $2,506 |
| 6 Bedrooms | $2,807 |
| 7 Bedrooms | $3,032 |
| 8 Bedrooms | $3,184 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,470 | $274,848 | 0.53% | F |
| 3BR | $1,880 | $351,327 | 0.54% | F |
| 4BR | $2,160 | $507,598 | 0.43% | F |
| 5BR | $2,506 | $659,962 | 0.38% | F |
U.S. Census Bureau data (2024)
The neighborhood in ZIP code 47119, located in Floyds Knobs, Indiana, is characterized by a relatively small population of 12,042 residents. Only 5.7% of the residents are renters, indicating a predominantly owner-occupied community. The median household income is notably high at $119,410, placing it well above the national average. Additionally, the median home value stands at $401,605, reflecting a prosperous area where homeownership is both desirable and attainable.
Transitioning into the economic realities of renting, the Fair Market Rent (FMR) for ZIP 47119, as set for fiscal year 2024, is $1,440. This figure represents the government's benchmark for determining the maximum allowable rent for Section 8 vouchers. In stark contrast, the actual market rent, according to the Census Bureau's American Community Survey (ACS), is significantly lower at $1,089. This discrepancy suggests a potential opportunity for landlords who can offer properties within the lower market range while still benefiting from the higher FMR rates associated with Section 8 vouchers.
Considering the hands-off versus hands-on approach to investing in this ZIP code, the data leans towards favoring a hands-off operator. With a high median income and a low percentage of renters, there is less pressure to actively manage properties or invest in extensive renovations to attract tenants. However, for a value-add buyer looking to improve properties and potentially increase rental income, the gap between the FMR and the current market rent offers a strategic entry point. By enhancing property quality and positioning them closer to the FMR, such an investor could capitalize on the higher voucher rates while serving a niche market of voucher holders in an otherwise affluent 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.