Location: Louisville, KY | Metro: Louisville, KY-IN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 47160 are straightforward. The SAFMR (Standard Area Fair Market Rent) for a two-bedroom apartment is set at $1120 per month for fiscal year 2024. This figure is specifically tailored for this ZIP code, meaning it reflects the rental conditions unique to 47160.
In contrast, the local market rent for a two-bedroom unit, according to the Census ACS, is $950. This lower market rate can be a point of confusion for landlords unfamiliar with how Section 8 works. It's important to understand that the SAFMR is the benchmark used by the Housing Choice Voucher program to determine what they will pay.
A Section 8 voucher does not cover the entire rent amount. Instead, it reimburses the landlord for the difference between the tenant's portion and the SAFMR. The tenant's portion is typically 30% of their adjusted income. If we assume an average adjusted income for a family in ZIP 47160, the tenant would owe about $336 towards rent, which is 30% of $1120. However, if their actual income is lower, their portion could be less, but it cannot exceed 30% of the SAFMR.
The utility allowance varies based on the number of bedrooms and the specific needs of the household. For a two-bedroom apartment, the utility allowance is generally around $200. This means the total reimbursement a landlord can expect from the housing authority is the sum of the tenant's portion and the utility allowance, which comes out to $536.
This leaves a significant gap between the SAFMR and the reimbursement. In ZIP 47160, the reimbursement gap for a two-bedroom apartment is approximately $584 per month. This gap must be covered by the tenant, who pays the difference between the SAFMR and the local market rent, which in this case is $170. Therefore, the total monthly payment a landlord receives is the sum of the housing authority reimbursement and the tenant's additional contribution, totaling $706.
In summary, landlords in ZIP 47160 should anticipate a reimbursement gap when renting to tenants using a Section 8 voucher for a two-bedroom apartment. The gap is substantial, and while the voucher system provides a measure of security and predictability, it does not fully cover the SAFMR, leaving a surplus of $414 over the local market rent of $950.
Data Sources: FMR data from HUD (2027). 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.