Section 8 Payment Standards — Louisville, Kentucky (FY 2026)
HUD Small Area Fair Market Rent (SAFMR) data for Louisville ZIP codes, plus how Section 8 rent compares to typical market asking rents.
Jefferson County investors targeting cash flow should compare every listing to Louisville-area SAFMR, not just market rent.
County est. 2BR SAFMR
$1,272
County median home value
$270,521
Est. Section 8 yield
5.6%
On a typical Louisville county home, HUD's 2BR limit ($1,272/mo) vs an estimated market asking rent (~$2,164/mo) suggests a +-$892/mo Section 8 premium before utilities, payment standard adjustments, and rent reasonableness.
Sample Louisville ZIP codes — FY 2026 SAFMR
Payment standards vary by ZIP and bedroom count. Always confirm current limits with the local housing authority before underwriting a deal.
| ZIP | 0BR | 1BR | 2BR | 3BR | 4BR |
|---|---|---|---|---|---|
| 40202 | $1,060 | $1,140 | $1,390 | $1,780 | $2,070 |
| 40210 | $870 | $950 | $1,150 | $1,470 | $1,710 |
| 40211 | $840 | $910 | $1,110 | $1,420 | $1,650 |
Why Section 8 rent matters in Louisville
Most investors underwrite Louisville rentals using Zillow or market asking rent. Section 8 uses HUD SAFMR payment standards — and in many Kentucky markets the gap between HUD rent and market rent is what makes a property cash-flow.
Local PHAs may set payment standards between 90% and 110% of SAFMR, subtract utility allowances, and run rent reasonableness tests. Use full SAFMR as a ceiling, not a guarantee on every door.
Search live Louisville listings scored on Section 8 rent
Rich from Section 8 merges live for-sale inventory in Louisville, KY with official HUD SAFMR data, rent gap scoring, and instant cash-flow underwriting — not Zillow rent guesses.
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