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 | $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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,600 | $236,234 | 0.68% | D |
U.S. Census Bureau data (2024)
24.4% of the population in ZIP 47162 rents their homes, indicating a significant demand for rental properties. The Fair Market Rent (FMR) for the area, set at $1280 for zip FY 2024, reflects the maximum amount a landlord can charge for a Section 8 voucher. However, the actual market rent stands at $960 according to Census ACS data, suggesting that landlords could potentially benefit from the higher FMR rates if they meet the quality standards required by the program. The median home value in the area is $226,922, which provides a benchmark for property values and potential investment opportunities.
$59,444 is the median income in ZIP 47162, which is crucial for understanding the financial capacity of potential tenants. Given that the median income is below the FMR threshold, it implies that many residents may rely on government assistance to afford housing, making Section 8 vouchers a viable option for securing tenants. The absence of specific data regarding days on market (DOM) and the percentage of price-cut shares suggests that the local real estate market might be stable, without significant fluctuations in pricing or prolonged periods of unsold inventory.
The discrepancy between the market rent of $960 and the FMR of $1280 presents an opportunity for landlords to increase their rental income while providing affordable housing options. With 24.4% of the population renting and a median income of $59,444, landlords should consider the benefits of participating in the Section 8 program to ensure steady occupancy and a reliable tenant pool. This strategy aligns with the economic realities of the area and leverages the government's commitment to affordable housing.
Verdict: ZIP 47162 is a suitable market for landlords to engage in the Section 8 program, given the high renter share and favorable FMR compared to the current market rent.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.