FY2027 Small Area FMR · Louisville, KY

ZIP 40216 Fair Market Rent & Payment Standards

HUD's FY2027 Small Area Fair Market Rent for a two-bedroom home in ZIP code 40216 (Louisville, KY) is $1,070 a month, down 0.9% from FY2026. That is 16% below the Louisville, KY-IN area-wide FMR of $1,276.

2-bedroom SAFMR$1,070per month ▼ 0.9%

Area-wide 2 BR FMR$1,276Louisville, KY-IN

Rank in the area107thof 130 ZIP codes

Payment standard range, 2 bedrooms

90% of SAFMR$963

2 BR Small Area FMR$1,070

110% of SAFMR$1,177

Housing agencies may set voucher payment standards anywhere from 90% to 110% of the FMR without asking HUD.

Studio$820■ 0.0%

1 BR$890■ 0.0%

2 BR$1,070▼ 0.9%

3 BR$1,370▼ 1.4%

4 BR$1,570▼ 2.5%

FY2027 FY2026

Where 40216 sits in the Louisville, KY-IN area

Of the 130 ZIP codes HUD lists for the area, 40216 has the 107th highest two-bedroom Small Area FMR. Louisville, KY-IN is one of the 65 metro areas where HUD requires Small Area FMRs for the Housing Choice Voucher program (designated 2023), so local housing agencies must set payment standards from this ZIP code's figure, normally between $963 and $1,177 for two bedrooms.

All unit sizes

Monthly gross rent including utilities
Unit	FY2027 SAFMR	Payment standard range	Area-wide FMR	FY2026 SAFMR
Studio	$820	$738 – $902	$976	$820
1 bedroom	$890	$801 – $979	$1,058	$890
2 bedrooms	$1,070	$963 – $1,177	$1,276	$1,080
3 bedrooms	$1,370	$1,233 – $1,507	$1,629	$1,390
4 bedrooms	$1,570	$1,413 – $1,727	$1,874	$1,610

A household renting a two-bedroom home at the Small Area FMR of $1,070 needs about $42,800 a year to keep housing costs at 30% of income. The area median family income is $99,000 and the 80% low-income limit for four people is $79,200. ZIP code 40216 lies mainly in Jefferson County. See the Louisville, KY-IN metro page for the full income limits table and the household check.

Nearby ZIP codes

ZIP	Place	Distance	2 BR SAFMR
40215	Louisville	2.9 mi	$1,220
40211	Louisville	3.3 mi	$1,110
40258	Louisville	3.6 mi	$1,300
40214	Louisville	4.1 mi	$1,170
40210	Louisville	4.1 mi	$1,130
40208	Louisville	4.4 mi	$1,090

Questions

What is the Fair Market Rent for ZIP code 40216?

HUD's FY2027 Small Area Fair Market Rents for 40216 are $820 (studio), $890 (1 BR), $1,070 (2 BR), $1,370 (3 BR) and $1,570 (4 BR) a month.

What is the Section 8 payment standard in 40216?

Housing agencies set payment standards between 90% and 110% of the applicable FMR without HUD approval. For a two-bedroom unit in 40216 that range is $963 to $1,177 if the agency uses Small Area FMRs. Ask your housing agency for its actual payment standard.

Which income limits apply in 40216?

The FY2026 income limits of the Louisville, KY-IN area apply: median family income $99,000, low-income (80%) limit $79,200 for a family of four.