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 | $850 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,410 | $278,898 | 0.51% | F |
| 4BR | $1,620 | $362,821 | 0.45% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 47163 stands at $59,837, indicating a moderate economic status among residents. However, the absence of specific market rate data presents a challenge in assessing whether a typical household can afford local rents. Despite this, we can analyze the situation based on the Fair Market Rent (FMR) standards set by the government.
The FMR for ZIP 47163 in fiscal year 2024 is $1200. This figure represents the maximum amount that a Section 8 voucher will cover towards rent. Given the median income, it suggests that households relying solely on their earnings might struggle to meet market rates if they exceed the voucher limits significantly. The limited data on market rates implies a need for landlords to be flexible and competitive.
With only 5.3% of the 1,335 population being renters, the pool of potential tenants is relatively small. This low percentage indicates a tight rental market where landlords must carefully consider their pricing strategies to attract and retain tenants. The affordability gap means that landlords could face challenges in finding enough cash-paying tenants willing to pay above the voucher limit.
The takeaway for landlords is clear: focusing on accepting Section 8 vouchers can be a strategic advantage. By aligning with the $1200 FMR, landlords ensure a stable tenant base without the risk of vacancies due to high rents. While cash-paying tenants might offer higher rents, the limited number of renters in the area makes voucher acceptance a more reliable strategy for occupancy and income stability.
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.