I don't know enough about the fuel system to know for sure what's wrong, but I'm sure someone here does.

I have a 2010 Iron 883, and since last summer, the low fuel light will come on (doesn't seem to happen all the time, but maybe 45-50% of the time), even though I know for a fact that the bike is not low on fuel. I've even had it come on after having only ridden 30 miles after a fill-up. Shutting the bike down and starting it back up seems to resolve the problem, until it happens again. The bike is under warranty, so I do want to get it taken care of, but it's nothing that's really impacting the operation of the bike, since I know how much I typically get out of a tankful to begin with.

Does this sound like a faulty sensor or something else?

 

Sounds like a normal sportster. You can have them replace it under warranty, but it'd likely happen again after awhile.

Mine does the same thing, but I pay more attention to the trip meters.

 

Same here, go by the odometer and you won't have a problem.

 

It will happen a lot less if you dont turn the ignition on untill you have the bike stood up.