Section 8 Cash Flow in Louisville, Kentucky
Louisville, Kentucky earns a B for Section 8 investing, our Strong tier: reliable cash flow with the right property and a market worth screening regularly. The median 3-bed voucher is $1,415/mo across Jefferson County, a steady Southern number for buy-and-hold.
A B means selectivity still matters, but Louisville's carrying costs help, with property tax around 0.8% and insurance near 0.8%, both on the lighter side. The 1% rule lands a deal near $142,000. Run your target address free on CloseHound before you offer.
Louisville HUD Section 8 voucher rents by ZIP (FY2026)
Official HUD Small Area Fair Market Rents — the voucher ceiling a landlord can collect in each ZIP, by bedroom count.
| ZIP code | 2-bed | 3-bed | 4-bed |
|---|---|---|---|
| 40203 | $1,100/mo | $1,410/mo | $1,630/mo |
| 40208 | $1,080/mo | $1,390/mo | $1,610/mo |
| 40210 | $1,150/mo | $1,470/mo | $1,710/mo |
| 40211 | $1,110/mo | $1,420/mo | $1,650/mo |
| 40212 | $1,080/mo | $1,390/mo | $1,610/mo |
| 40215 | $1,220/mo | $1,560/mo | $1,810/mo |
| 40216 | $1,080/mo | $1,390/mo | $1,610/mo |
| 40218 | $1,300/mo | $1,660/mo | $1,930/mo |
Source: HUD FY2026 SAFMR. CloseHound underwrites live listings against these exact ceilings.
Louisville Section 8 FAQ
What's the Section 8 voucher rent for a 3-bed in Louisville?+
The median 3-bedroom voucher in Louisville is $1,415/mo for FY2026, with sampled ZIPs ranging from $1,390 to $1,660/mo.
Is Louisville a good Section 8 market?+
It grades B, meaning reliable cash flow with the right property. The market is worth screening regularly, though you should still underwrite each deal individually.
What's the property-tax and insurance drag in Jefferson County?+
Both are light: property tax runs about 0.8% and insurance about 0.8% of value, which keeps carrying costs reasonable for a cash-flow strategy.
How do I find cash-flowing Section 8 deals in Louisville?+
At a $1,415/mo median voucher, a 1% rule deal lands near $142,000. Screen Louisville listings against that benchmark free on CloseHound.
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