Location: Fayette 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 | $970 |
| 1 Bedroom | $1,090 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,730 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,320 | $181,002 | 0.73% | D |
| 3BR | $1,730 | $266,703 | 0.65% | D |
| 4BR | $1,730 | $339,363 | 0.51% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 47024 (Laurel, IN, Fayette County, IN metro) presents an opportunity for rental income but also reveals potential challenges. The Fair Market Rent (FMR) set at $1050 for the fiscal year 2024 exceeds the current market rent of $961, based on Census ACS data. This suggests that landlords could potentially increase rents to align with FMR, though it would require a careful assessment of the local market's ability to bear higher costs.
Acquisition of properties in this area appears to be affordable. With a median home value of $244,366, the cost of entry into the real estate market is relatively low. However, the lack of data on days on market (DOM) and the percentage of homes needing price cuts indicates that while the median value is attractive, there might be hidden risks or inefficiencies in the property market that need further investigation.
Tenant demand in ZIP 47024 is modest. The total population stands at 2,901 individuals, with 17.3% being renters. This equates to approximately 500 tenants who might be interested in renting properties. Given the limited population size, competition among landlords could be fierce, and attracting and retaining tenants might require offering competitive rental rates and maintaining high-quality living conditions.
Verdict: ZIP 47024 offers a niche investment opportunity with potentially favorable rent math, particularly if landlords can leverage the higher FMR to their advantage. Acquisition costs are reasonable, making it accessible for small-portfolio investors. However, tenant demand is constrained by the small population, which implies a need for strategic management to ensure occupancy. Landlords should be prepared for a challenging yet manageable market, where attention to detail and competitive pricing will be key to success.
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.