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 | $1,110 |
| 1 Bedroom | $1,200 |
| 2 Bedrooms | $1,450 |
| 3 Bedrooms | $1,850 |
| 4 Bedrooms | $2,130 |
| 5 Bedrooms | $2,471 |
| 6 Bedrooms | $2,768 |
| 7 Bedrooms | $2,989 |
| 8 Bedrooms | $3,138 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,850 | $247,331 | 0.75% | D |
U.S. Census Bureau data (2024)
The ZIP code 47166 is situated in a small-town setting with a population of 1,484 residents. Only 14.8% of these residents are renters, indicating a primarily owner-occupied community. The median household income here stands at $71,875, suggesting a middle-class demographic. The median home value in ZIP 47166 is $247,706, reflecting the typical property values in this area.
Moving into the realm of rental economics, the Fair Market Rent (FMR) for ZIP 47166, as set by HUD for fiscal year 2024, is $1,140. In contrast, the Census American Community Survey (ACS) reports the average market rent to be $1,305. This gap between the FMR and the market rent highlights a potential opportunity for landlords who can offer properties that meet the higher market rate while still being within the reach of Section 8 tenants.
Given the low percentage of renters and the relatively high median income, ZIP 47166 may not be the ideal location for hands-off voucher operators seeking large volumes of rental properties. However, for hands-on value-add buyers willing to invest in improving or renovating properties to command the higher market rents, this ZIP code presents a viable option. Such investors could focus on enhancing the quality of their units to attract both Section 8 tenants and those willing to pay above the voucher limit, thereby maximizing returns.
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.