Location: Louisville, KY | Metro: Louisville, KY-IN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,030 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,710 |
| 4 Bedrooms | $1,970 |
| 5 Bedrooms | $2,285 |
| 6 Bedrooms | $2,559 |
| 7 Bedrooms | $2,764 |
| 8 Bedrooms | $2,902 |
U.S. Census Bureau data (2024)
The analysis for Greenville, IN, located in ZIP code 47124, reveals a significant gap between the Fair Market Rent (FMR) set at $1310 for fiscal year 2024 and the actual market rent of $1163 based on Census ACS data. This discrepancy amounts to a difference of $147, or approximately 12.6%, indicating that the FMR is higher than the market rent.
In such a scenario where FMR exceeds market rent, the presence of Section 8 voucher tenants can transform a property into a yield play. Landlords who accept these vouchers receive a guaranteed payment that matches the higher FMR rate, thereby increasing their rental income above what they would typically earn from market-rate tenants. This is particularly advantageous given the low percentage of renters in Greenville, IN, which stands at just 2.0%. The high median home value of $342,878 suggests that homeownership is more prevalent, making the demand for rental properties less competitive and potentially more stable with voucher-supported tenants.
Moreover, the median income of $121,188 in Greenville, IN, indicates a relatively affluent community. However, it's important to note that the FMR is designed to cover a broader range of incomes, including those below the median. Therefore, landlords accepting Section 8 vouchers in this area can benefit from a steady stream of income without the risk of vacancy or delinquency often associated with market-rate rentals. The analysis underscores the financial benefits of participating in the Section 8 program, especially in a market where the FMR is set above the prevailing market rent.
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.