Location: Ripley County, IN | Metro: Ripley County, IN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
U.S. Census Bureau data (2024)
A skeptical investor might first question whether the Fair Market Rent (FMR) of $1,100 for the metro area in fiscal year 2026 will sufficiently cover the mortgage on a typical home in the region. However, the median home value in ZIP 47034 is listed at $122,500. This suggests that a mortgage payment on a home within this price range would likely be lower than the FMR, especially considering the current low-interest-rate environment. It's important to note that the FMR figure provided does not directly correlate with the median home value in ZIP 47034, but it gives a general idea of what rental income could be expected.
The next concern is whether there is sufficient rental demand at a 37.8% rental vacancy rate. According to the data from United States Zip Codes, the typical rental price for a 2-bedroom apartment in ZIP 47034 is between $500 - $749 per month, inclusive of utilities. While the 37.8% vacancy rate may seem high, it's worth noting that this figure represents the entire rental market, not just the portion covered by Section 8 vouchers. A significant portion of the rental market in 47034 is priced below the FMR, indicating that there is demand for affordable housing.
The final objection is whether Section 8 vouchers will keep pace with the market rents, which are currently around $828. The FMR of $1,100 suggests that the government aims to ensure that voucher holders can afford decent housing in the area. However, the data does not provide specific information on the amount of Section 8 vouchers issued in ZIP 47034 or how these amounts have changed over time. Given the gap between the FMR and the current market rents, it seems likely that voucher amounts could support tenants in finding suitable housing. Still, the exact match between voucher amounts and actual rents requires further investigation into local housing authority policies and funding levels.
In summary, while the data provides some insights into the rental market and median home values, it does not offer a complete picture of the financial viability of properties in ZIP 47034 for small-portfolio investors. The FMR is higher than the typical rental prices, suggesting potential for rental income to cover mortgage payments. There is a noticeable rental vacancy rate, but it aligns with the presence of lower-priced units. Lastly, the current market rents are lower than the FMR, implying that Section 8 vouchers could help bridge the affordability gap, although specific trends in voucher usage are not detailed in the provided data.
Data Sources: FMR data from HUD (2027). 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.