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 | $1,000 |
| 1 Bedroom | $1,090 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,670 |
| 4 Bedrooms | $1,920 |
| 5 Bedrooms | $2,227 |
| 6 Bedrooms | $2,494 |
| 7 Bedrooms | $2,694 |
| 8 Bedrooms | $2,829 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,310 | $211,937 | 0.62% | D |
| 3BR | $1,670 | $277,340 | 0.6% | D |
| 4BR | $1,920 | $401,725 | 0.48% | F |
| 5BR | $2,227 | $517,738 | 0.43% | F |
U.S. Census Bureau data (2024)
The ZIP code 47172, located in Sellersburg, Indiana, stands out within Clark County due to its unique demographic and economic characteristics. With a population of 21,045 residents, it has a rental rate of 17.1%, indicating that a significant portion of the housing market is dedicated to renters. The median household income in this area is $82,503, which is relatively high compared to many other ZIP codes. Additionally, the median home value of $300,187 suggests a stable housing market where property values are robust.
Moving into the specifics of Section 8 voucher economics, the Fair Market Rent (FMR) for ZIP 47172 for fiscal year 2024 is set at $1,490. This figure represents the maximum amount that landlords can receive through the voucher program for renting a unit. In contrast, the market rent, measured by ZORI (Zillow's Observed Rent Index), is $1,282. This discrepancy indicates that landlords participating in the Section 8 program could potentially earn a higher rent per unit than the current market average, making it an attractive option for those looking to maximize their rental income.
The data signature for ZIP 47172 reads as stable. The median income and home values suggest a community with financial stability and a consistent demand for housing. The slightly higher FMR compared to the market rent also supports this notion, as it implies that the government is setting these rates to ensure affordability while compensating landlords fairly for their properties. This balance between market dynamics and government support creates a favorable environment for both landlords and tenants, reducing the risk of transitional periods where either party might struggle with housing costs or revenue.
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.