Location: Louisville, KY | Metro: Louisville, KY-IN HUD Metro FMR Area
| 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 |
The economics of Section 8 housing in ZIP code 47190, located in Louisville County, Kentucky, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2024 is set at $1280. This figure represents the maximum amount that the Housing Choice Voucher program will pay toward the rent of a two-bedroom unit in this area.
To understand how much a landlord can expect to receive, it's essential to factor in the tenant's portion of the rent and any utility allowances. Typically, tenants are required to contribute 30% of their adjusted income towards rent. If we assume an average adjusted income of $1600 per month for a household eligible for Section 8, the tenant would be expected to pay $480 towards rent. This leaves a balance of $800 for the landlord to be covered by the voucher.
In addition to the base rent, there are utility allowances which vary based on the type of unit and the location. For a two-bedroom unit in ZIP 47190, the utility allowance is included within the SAFMR. Therefore, the landlord does not need to account for additional payments for utilities separately when calculating the total reimbursement.
Given the SAFMR of $1280 and the tenant's contribution of $480, the typical reimbursement gap or surplus for a two-bedroom unit in ZIP 47190 is minimal. Landlords should expect to receive exactly $1280 per month for a two-bedroom rental property, assuming the tenant's portion is paid in full and on time. This amount is consistent with the SAFMR set for this specific ZIP code, ensuring that landlords are compensated according to the federal guidelines without significant loss or gain.
It's important to note that while the SAFMR provides a clear benchmark, local market conditions can influence actual rents. However, since the local market rent data is currently unavailable, the SAFMR serves as the definitive reference point for determining the economic viability of participating in the Section 8 program with a two-bedroom unit in ZIP 47190.
Data Sources: FMR data from HUD (2027).
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.