Skip to main content
Loading page
Jefferson County/Louisville/40242

40242

ZIPSAFMR
Jefferson County, KY
Zillow

ZIP Investment Score

114Above average

095130300
BRFMR
Eff. Rent
0 BR$1,110$1,080
1 BR$1,200$1,300
2 BR$1,450$1,550
3 BR$1,850$2,010
4 BR$2,130$2,340
5 BR$2,450Not available
6 BR$2,817Not available
7 BR$3,239Not available
8 BR$3,725Not available

Purchase Price Calculator

Maximum purchase price
$168,413

Cost breakdown

+Likely effective rent$1,550
HUD FMR$1,450
Market rent$1,610
Est. payment standard (107%)Used$1,550
-Principal and interest-$852
Loan amount$134,730
Down payment$33,683
Rate6.50%
Term30 years
-Operating costs-$498
Property taxes-$168
Insurance-$175
Utilities$0
HOA$0
Management-$155
=Target cash flow+$200
Calculation mode

Hold period projections

Annual appreciation rate
3-year hold
+$24,976(74.2% ROI)
Projected value
$181,362
Return breakdown
Property appreciation+$12,949
Loan principal paid down+$4,827
Rental cash flow+$7,200
5-year hold
+$42,739(126.9% ROI)
Projected value
$190,544
Return breakdown
Property appreciation+$22,131
Loan principal paid down+$8,608
Rental cash flow+$12,000
10-year hold
+$91,681(272.2% ROI)
Projected value
$215,583
Return breakdown
Property appreciation+$47,170
Loan principal paid down+$20,511
Rental cash flow+$24,000

Public Housing Authority

Loading Public Housing Authority

Rolodex

Loading Rolodex

Market Alignment

Studio
1.03
1 BR
0.88
2 BR
0.90
3 BR
0.88
4 BR
0.86
0.701.001.30aligned range
Historical
FY 2023-2027
FMR
FY2027
Market rent
last ~365 days
Property value
--
Tax rate
--
Mortgage rate
--

ZIP 40242 fair market rent, FY 2027

For FY 2027, HUD's Small Area Fair Market Rent for a two-bedroom unit in ZIP 40242 (Louisville, KY) is $1,450 a month. That is down 1.4% from $1,470 in FY 2026. Louisville is in the Louisville, KY-IN HUD Metro FMR Area, where HUD requires housing authorities to set voucher payment standards by ZIP code using Small Area FMRs. Among 61 ZIP codes in Jefferson County, 40242 has the 13th-highest two-bedroom rent (county range $1,010–$1,910). The median county two-bedroom FMR in Kentucky is $925, so ZIP 40242 is 57% above it.

FY 2027 rent by bedroom

FY 2027 fair market rent by bedroom for 40242
BedroomsFY 2027Change90–110% range
Studio$1,110−0.9%$999–$1,221
1BR$1,200−0.8%$1,080–$1,320
2BR$1,450−1.4%$1,305–$1,595
3BR$1,850−1.6%$1,665–$2,035
4BR$2,130−2.3%$1,917–$2,343

Fair market rent history, FY 2023–2027

Fair market rent by fiscal year for 40242
Fiscal yearStudio1BR2BR3BR4BR
FY 2027$1,110$1,200$1,450$1,850$2,130
FY 2026$1,120$1,210$1,470$1,880$2,180
FY 2025$1,180$1,290$1,570$2,020$2,350
FY 2024$1,170$1,290$1,560$2,040$2,340
FY 2023$940$1,070$1,280$1,700$1,950

Two-bedroom rent in nearby Jefferson County ZIP codes

FY 2027 two-bedroom Small Area FMR by ZIP code
ZIP code2 bedroomvs. 40242
40229$1,480+2.1%
40231$1,300−10.3%
40232$1,300−10.3%
40233$1,300−10.3%
40241$1,640+13.1%
40242Current$1,450—
40243$1,480+2.1%
40245$1,820+25.5%
40250$1,300−10.3%
40251$1,300−10.3%
40252$1,300−10.3%
40253$1,300−10.3%

Questions about ZIP 40242 rents

How much will Section 8 pay for a two-bedroom in ZIP 40242?

Housing authorities set voucher payment standards, normally between 90% and 110% of the FMR. With a two-bedroom FMR of $1,450, that basic range is $1,305 to $1,595 a month. The voucher pays the lower of the payment standard or the gross rent, minus the tenant's share, which is usually about 30% of adjusted monthly income. Confirm the local housing authority's current schedule before underwriting.

Which HUD fair market rent area is ZIP 40242 in?

ZIP 40242 is in the Louisville, KY-IN HUD Metro FMR Area. HUD requires Small Area FMRs in this area, so payment standards are set by ZIP code.

How much did fair market rent change in ZIP 40242 for FY 2027?

The two-bedroom FMR fell 1.4%, from $1,470 in FY 2026 to $1,450 in FY 2027. Since FY 2023 it has risen 13.3%.

When do FY 2027 fair market rents take effect?

HUD's FY 2027 fair market rents took effect on October 1, 2026. When FMRs change, housing authorities generally have up to three months to bring payment standards back within 90% to 110% of the new FMR.

Source: HUD FY 2027 Small Area Fair Market Rents and area FMRs. Payment-standard ranges are 90% to 110% of FMR, HUD's basic range, not a housing authority's published schedule. How payment standards are set

County fair market rentLouisville, KY fair market rentKY statewide rentsWhat is SAFMR?Data sources