Location: Louisville, KY | Metro: Louisville, KY-IN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $910 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
To classify ZIP code 47146 in Unknown, KY, we need to analyze the available data on yield and stability. The key figure for yield is the Fair Market Rent (FMR) set at $1220 for the fiscal year 2024. This FMR represents the maximum amount that landlords can charge for rental units under the Section 8 program.
The lack of data on market rents and home values means we cannot directly compare these figures to determine if there is a premium for Section 8 properties. However, the absence of such data also suggests that the area might be less competitive, potentially leading to higher yields relative to market conditions. If the FMR of $1220 is significantly above the typical market rent, it would indicate a high-yield market. Conversely, without comparative market data, we cannot definitively state this.
Regarding stability, the ZIP code 47146 lacks specific percentages for the proportion of renters, days on market (DOM), and median income. These metrics are crucial for assessing the financial health and predictability of rental income in an area. Without them, it's challenging to gauge how stable the rental market is. A high percentage of renters usually correlates with higher stability, as does lower DOM, indicating quick turnover and consistent demand. Higher median incomes can also stabilize the market by reducing the risk of tenant default.
Given the limited data, ZIP 47146 appears to offer a potential high-yield opportunity due to the set FMR, but the lack of additional stability indicators makes it difficult to fully categorize it. It could lean towards being a high-yield market if the FMR exceeds local market rents, but without data on the percentage of renters, DOM, and income levels, the stability remains unclear. This suggests that while the potential for high returns exists, the risk profile is uncertain.
To make a more informed decision, landlords and small-portfolio investors should seek out local real estate agents or conduct their own market research to fill in the gaps regarding market rents, home values, and demographic factors that influence stability.
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.