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 | $790 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,310 | $255,300 | 0.51% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 47135 in fiscal year 2024 is set at $970. This figure represents the maximum amount that a landlord can charge for rent under the Section 8 program, not the actual rent that tenants will pay. The FMR is established by the U.S. Department of Housing and Urban Development (HUD) to ensure that rents are reasonable and reflective of the local market.
In ZIP 47135, the local median rent is currently listed as N/A. However, given the 11.8% share of renters in the area, there is a significant demand for affordable housing options. This percentage indicates that nearly one in every eight residents are seeking rental properties, which suggests a stable tenant pool for those interested in Section 8 rentals.
The acquisition cost for a property in this ZIP code is around $262,064. This is the average price you would expect to pay for a single-family home, which could be a potential investment opportunity if you plan to enter the Section 8 market. While the FMR of $970 is the ceiling for rent, it does not factor in utility costs, which are often paid separately by the tenant.
Before committing to a Section 8 rental property, it's crucial to verify that your property meets HUD's Housing Quality Standards (HQS). These standards ensure that the rental unit is safe, decent, and sanitary. Compliance with HQS is mandatory for all Section 8 properties, and failing to meet these requirements can result in penalties or loss of tenancy.
To summarize, the FMR of $970 sets the limit on what you can charge for rent, while the 11.8% renter share signals a strong demand for rental units. With an average property price of $262,064, entering the Section 8 market in ZIP 47135 can be a strategic move. Just make sure your property complies with HQS before signing up for the program.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.