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 | $1,460 |
| 1 Bedroom | $1,580 |
| 2 Bedrooms | $1,910 |
| 3 Bedrooms | $2,440 |
| 4 Bedrooms | $2,810 |
| 5 Bedrooms | $3,260 |
| 6 Bedrooms | $3,651 |
| 7 Bedrooms | $3,943 |
| 8 Bedrooms | $4,140 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,440 | $283,364 | 0.86% | C |
| 4BR | $2,810 | $366,635 | 0.77% | D |
U.S. Census Bureau data (2024)
Investors looking into ZIP 47143 often have several key concerns regarding the feasibility of investing in properties within this area. One primary objection is whether the Fair Market Rent (FMR) of $1,320 for the fiscal year 2024 will sufficiently cover the mortgage on a property valued at $300,084. To address this, it's important to consider the typical mortgage rates and terms. Assuming a standard 30-year fixed-rate mortgage with an interest rate of around 4%, the monthly payment on a $300,084 home would be approximately $1,460. This means that the FMR does not fully cover the mortgage payment, leaving a shortfall of roughly $140 per month.
A second common concern is the level of demand from renters, particularly at a vacancy rate of 8.5%. While this rate suggests there is some competition among landlords, it also indicates that there is a reasonable amount of rental activity. The vacancy rate is a balance between supply and demand; higher rates can mean lower competition but also less occupancy. In ZIP 47143, an 8.5% vacancy rate is not unusually high and should be manageable with proper property management practices.
The third issue raised is the ability of Housing Choice Vouchers to keep up with market rents of $1,713. According to the data, the voucher payment standards are set below this market rent, which could pose challenges for landlords. However, it's worth noting that voucher holders typically make up a significant portion of the rental market. Despite the gap between voucher amounts and market rents, these tenants provide stable income due to the government's guarantee of payments. Therefore, while the voucher payments may not match the full market rent, they still offer a reliable source of revenue.
To summarize, while the FMR of $1,320 does not fully cover the mortgage on a $300,084 home, it leaves a manageable shortfall. The 8.5% vacancy rate suggests a competitive but active rental market. Lastly, although Housing Choice Vouchers do not reach the full market rent of $1,713, they provide a steady stream of income. These points highlight both the challenges and opportunities present in ZIP 47143 for landlords and small-portfolio investors.
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.