Location: Louisville, KY | Metro: Louisville, KY-IN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $960 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,600 |
| 4 Bedrooms | $1,840 |
| 5 Bedrooms | $2,134 |
| 6 Bedrooms | $2,390 |
| 7 Bedrooms | $2,581 |
| 8 Bedrooms | $2,710 |
The economics of Section 8 housing in ZIP code 47131, located in Louisville, Kentucky, are straightforward. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) is set at $1280 per month for fiscal year 2024. This rate is specific to this ZIP code, reflecting localized rental market conditions.
Section 8 vouchers are designed to cover the difference between what a low-income family can afford and the actual rent. The tenant's portion is generally calculated as 30% of their adjusted monthly income. If we assume an average adjusted monthly income of $1000 for a tenant in this scenario, the tenant would be expected to pay $300 towards the rent. The remaining amount, up to the SAFMR, would be covered by the government.
In ZIP 47131, the voucher payment would be $980 ($1280 - $300) to the landlord, assuming the tenant’s income is exactly $1000. However, it's important to note that the SAFMR is the maximum amount that can be reimbursed. If the market rent for a 2BR is below $1280, the reimbursement will adjust accordingly. Unfortunately, the local market rent data for ZIP 47131 is currently unavailable, which makes it challenging to provide a precise comparison.
Additionally, Section 8 vouchers include utility allowances. These allowances vary but typically cover a portion of the tenant's electricity, gas, water, and sewer costs. In ZIP 47131, if the utility allowance is $200 per month, this amount would be paid directly to the tenant to help cover these expenses.
To summarize, a landlord in ZIP 47131 can expect to receive $980 per month for a 2BR apartment from the government under the Section 8 program, based on the SAFMR. This does not account for any additional utility allowances paid to the tenant. Given the SAFMR of $1280 and the typical tenant contribution of $300, there is no surplus or gap in reimbursement if the market rent matches the SAFMR. However, without specific local market rent data, it's impossible to determine if there is a consistent surplus or shortfall for landlords in this ZIP code.
Data Sources: FMR data from HUD (2027).
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.