Location: Ripley County, IN | Metro: Jennings County, IN
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 | $780 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,040 | $186,169 | 0.56% | F |
| 3BR | $1,350 | $267,392 | 0.5% | F |
| 4BR | $1,420 | $345,954 | 0.41% | F |
U.S. Census Bureau data (2024)
ZIP code 47037 in Indiana presents an interesting scenario for both renters and landlords. The median household income stands at $73,209, which provides insight into the financial capabilities of residents. At the current market rate of $870 per month (as reported by the Census Bureau's American Community Survey), renting becomes a significant expense for many households.
To put this into perspective, the Fair Market Rent (FMR) set by HUD for the metro area in fiscal year 2026 is $960. This means that even the government subsidy through Section 8 vouchers does not fully cover the market rate, leaving a discrepancy between what the market demands and what the voucher program offers.
The ZIP code has a total population of 4,330, with 25.4% being renters. Given these numbers, it's clear that there is a notable segment of the population looking for rental housing. However, the affordability gap is evident when comparing the median income to the rental rates. Households would need to dedicate approximately 12% of their monthly income to meet the market rate, which is already high. For those relying on vouchers, the situation is even tighter, as they would have to find properties willing to accept a voucher payment that is below the market rate but above the voucher standard.
This creates a competitive landscape for landlords. On one hand, accepting voucher payments at $960 could secure long-term tenants who are financially stable due to government support. On the other hand, aiming for market rates of $870 might attract more cash-paying tenants who are willing to pay slightly less than the going rate but still above the voucher amount.
The takeaway for landlords considering voucher versus cash-pay strategies is to carefully evaluate the local market dynamics. While the FMR of $960 might be lower than the market rate of $870, the steady income and low turnover associated with voucher tenants can be beneficial. Conversely, targeting the cash-paying market could lead to higher immediate returns but also requires navigating the challenges of finding tenants who can afford the higher rents without subsidies.
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.