Section 8 Fair Market Rent (FMR) for ZIP 47130 - 2027

Investment Score for ZIP 47130

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

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

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,110	$181,429	0.61%	D
2BR	$1,340	$188,156	0.71%	D
3BR	$1,710	$251,272	0.68%	D
4BR	$1,970	$347,395	0.57%	F
5BR	$2,285	$434,120	0.53%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 47130 (Jeffersonville, KY) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 47130, as of 2026, is set at $1340 for a two-bedroom unit. This figure represents 22.9% of the median household income of $70,290, indicating that it is relatively affordable compared to the local economic conditions. However, the actual rental market in Jeffersonville is significantly higher, with Zillow reporting a median price for a two-bedroom unit at $186,151. This translates into a price-to-FMR ratio of 11.6x, meaning that the actual cost of renting a property is more than eleven times the FMR. For voucher holders, this creates a significant constraint, as they can only afford properties up to the FMR limit. Consequently, voucher holders will find it challenging to secure housing in the current market, given the substantial gap between FMR and actual rental prices. #### Affordability & Renter Profile With 28.5% of the population being renters, Jeffersonville has a notable rental market. The occupancy rate stands at 92.8%, suggesting that the market is relatively tight, with few vacancies available. Given the high price-to-FMR ratio, it is likely that many renters are facing affordability challenges. The median household income of $70,290 provides some context; while the FMR for a two-bedroom unit is $1340, which is 22.9% of the median income, the actual rental costs are much higher. This indicates that the typical renter in Jeffersonville would need to spend a considerable portion of their income on rent if they were to secure a two-bedroom unit at the market rate. Therefore, the rental market is likely to be competitive, especially for those relying on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 47130 presents a mixed picture. While the rental market is robust, with a high occupancy rate and significant demand, the actual rental prices far exceed the FMR. This means that properties rented at FMR levels would likely generate negative cash flow, as the rental income would not cover the mortgage payments and other expenses associated with owning and maintaining a property. The investment grade for this ZIP code would be considered low due to the disparity between FMR and market rates. Investors focusing solely on Section 8 vouchers would face challenges in finding properties that offer positive cash flow at these rates. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider focusing on smaller units such as one-bedroom apartments. The FMR for a one-bedroom unit is $1100, which is still below the market rate but closer to what might be achievable in terms of rental income. This could provide a better chance of positive cash flow compared to larger units. 2. **Consider Subsidies Beyond Section 8**: Since the actual rental prices are so high relative to FMR, investors might want to explore other subsidies and programs that can help bridge the gap. For example, Low-Income Housing Tax Credits (LIHTC) or state-specific housing assistance programs could provide additional financial support to make properties more affordable for low-income tenants. 3. **Target Underserved Neighborhoods**: Within ZIP code 47130, there may be pockets where rental prices are lower due to less demand or different demographics. Identifying and targeting these neighborhoods could help investors find properties that are more aligned with FMR levels, thus improving the chances of positive cash flow. #### Bottom Line For investors focused specifically on Section 8 vouchers, the recommendation is to **skip** this ZIP code. The high price-to-FMR ratio makes it difficult to find properties that can generate positive cash flow when rented at FMR levels. Instead, investors might want to look for areas with a lower price-to-FMR ratio or consider alternative subsidy programs that can help offset the higher costs. If investors decide to proceed despite these challenges, they should carefully evaluate the potential for positive cash flow by targeting smaller units and exploring other financial assistance options.

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.