Location: Ripley County, IN | Metro: Cincinnati, OH-KY-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 | $880 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,180 | $202,650 | 0.58% | F |
| 3BR | $1,530 | $286,633 | 0.53% | F |
| 4BR | $1,570 | $341,010 | 0.46% | F |
U.S. Census Bureau data (2024)
The renter's perspective in ZIP 47031, located in Milan, Indiana, reveals a significant affordability gap. The median household income stands at $70,575, which is insufficient to cover the Fair Market Rent (FMR) of $1,100 set by the Housing Choice Voucher program for fiscal year 2024. This FMR is notably higher than the current market rate of $755 as reported by the Census Bureau's American Community Survey (ACS).
To put this into context, let's break down the numbers. A household earning the median income of $70,575 would struggle to meet the FMR of $1100 per month. In contrast, the market rate of $755 is more manageable but still represents a considerable expense relative to the average income. This disparity suggests that many renters in ZIP 47031 may find it challenging to secure housing without assistance.
With 20.0% of the population being renters and a total population of 5,659, the competition among landlords is likely to be fierce. The affordability gap means that landlords who accept vouchers could potentially attract a larger pool of tenants, especially those who might otherwise be priced out of the market. However, landlords who focus on cash-paying tenants must ensure their rental rates remain competitive while also considering the financial constraints of potential residents.
The takeaway for landlords is clear: accepting vouchers can provide a steady stream of tenants, though it comes with the trade-off of lower payments compared to the FMR. On the other hand, setting competitive market rates may attract cash-paying tenants but requires careful consideration of the local income levels. Landlords should weigh these options based on their financial goals and the demand for subsidized housing in the area.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.