Section 8 Fair Market Rent (FMR) for ZIP 47036 - 2027

Location: Franklin County, IN | Metro: Franklin County, IN HUD Metro FMR Area

Investment Score for ZIP 47036

N/A

Monthly Rent (2BR)

$1,180

Median Price (2BR)

$N/A

1% Rule

Annual Yield

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$860
1 Bedroom	$980
2 Bedrooms	$1,180
3 Bedrooms	$1,540
4 Bedrooms	$1,550
5 Bedrooms	$1,798
6 Bedrooms	$2,014
7 Bedrooms	$2,175
8 Bedrooms	$2,284

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$1,540	$305,396	0.5%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

1,173

Median Household Income

$98,300

Housing Units

388

Renter Percentage

14.7%

Occupancy Rate

89.2%

Renter Occupied

The ZIP code 47036 is a suburban area with a relatively small population of 1,173 residents. Only 14.7% of these residents are renters, indicating a primarily owner-occupied community. The median household income in this ZIP code is $98,300, suggesting a middle to upper-middle-class demographic. The median home value stands at $305,210, which reflects the overall economic status of the area.

Moving into the specifics of rental economics, the Fair Market Rent (FMR) for ZIP 47036 in fiscal year 2024 is set at $970. This is notably higher than the market rent reported by the Census Bureau's American Community Survey (ACS), which is $863. This discrepancy highlights a potential opportunity for landlords who can offer well-maintained properties at or slightly below the FMR rate, thereby attracting tenants eligible for Section 8 vouchers.

Given the low percentage of renters and the relatively high median income, ZIP 47036 might not be an ideal location for hands-off voucher operators. These investors typically seek areas with a higher proportion of renters and lower average incomes, where there is a greater demand for subsidized housing. Instead, this ZIP code seems better suited for hands-on value-add buyers who can focus on improving property quality and efficiency to meet the standards required for Section 8 participation while also commanding rents closer to the FMR.

To succeed in ZIP 47036, investors should consider the following:

Quality of Properties: Given the higher median income, tenants are likely to expect a certain standard of living. Therefore, maintaining or upgrading properties to a high-quality level is crucial.
Rent Pricing Strategy: Setting rents just below the FMR of $970 can attract Section 8 tenants while ensuring the property remains competitive in the local market.
Community Engagement: Engaging with the local community can help in understanding the specific needs and preferences of potential tenants, leading to more successful tenancy.

In conclusion, ZIP 47036 offers a niche opportunity for Section 8 investors who are willing to take a hands-on approach to property management and improvement. The combination of a modest rental market and a higher-income demographic presents a unique challenge and opportunity for those looking to enter or expand their presence in this area.

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.