Location: Ripley County, IN | Metro: Franklin County, IN HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $820 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,110 | $235,037 | 0.47% | F |
| 3BR | $1,440 | $320,760 | 0.45% | F |
| 4BR | $1,450 | $407,113 | 0.36% | F |
| 5BR | $1,682 | $509,742 | 0.33% | F |
U.S. Census Bureau data (2024)
In ZIP 47006 of Batesville, IN, there are notable risks associated with investing in Section 8 properties. Tenant turnover is a significant concern, as the market rent stands at $859, which is below the Fair Market Rent (FMR) of $1000 for FY 2024. This disparity can lead to higher tenant churn, as individuals may seek better rental deals outside of the Section 8 program. Additionally, vacancy exposure is a critical issue due to the lack of available data on days on market (DOM), indicating that there might be periods where properties remain unoccupied, affecting cash flow.
The deferred maintenance risk is also present, considering the typical home value of $320,798 and the median income of $72,559. Landlords may face challenges in maintaining property standards without adequate financial support from tenants, who might struggle to contribute to maintenance costs due to their lower income levels. These factors can result in higher maintenance expenses and potential delays in addressing property upkeep issues.
However, these risks are somewhat mitigated by the high renter share of 22.7%. A substantial portion of the population relies on renting, which typically translates into higher demand for Section 8 vouchers. This demand can provide a stable pool of tenants willing to use housing assistance programs, reducing the likelihood of prolonged vacancies.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.