Location: Switzerland 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 | $800 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,090 | $200,305 | 0.54% | F |
| 3BR | $1,420 | $273,523 | 0.52% | F |
| 4BR | $1,600 | $310,636 | 0.52% | F |
U.S. Census Bureau data (2024)
A landlord considering purchasing a property in ZIP code 47040 (Rising Sun, IN) for Section 8 must carefully evaluate several factors before making a decision. The first question to address is whether the Fair Market Rent (FMR) of $990 can cover the debt service on a property valued at $259,247.
If the answer is yes: The FMR of $990 is sufficient to meet the debt service requirements, assuming typical financing terms. This makes the property financially viable under Section 8 guidelines.
If the answer is no: A property priced at $259,247 would likely require a higher rental income to meet debt service obligations. Given that the FMR is only $990, this would make it challenging to cover costs without additional subsidies or adjustments in financing.
The second consideration is comparing the FMR against the market rent, which is reported to be $848 based on Census ACS data.
If market rent is below FMR: The market rent of $848 is less than the FMR of $990, indicating that Section 8 tenants could potentially pay a higher rent compared to what the market currently demands. This suggests a favorable position for landlords seeking to maximize their rental income.
If market rent is at or above FMR: The market rent being higher or equal to the FMR means that landlords might struggle to find Section 8 tenants willing to pay the full FMR. They may need to rely on the willingness of tenants to accept lower rents or the availability of supplemental funds.
The third factor is assessing the demand for rental properties. In ZIP 47040, 20.4% of residents are renters. However, the Days on Market (DOM) for rentals is listed as N/A, which indicates insufficient data to determine how quickly rental properties are typically leased.
If there is sufficient demand: With 20.4% of the population renting, there is a notable demand for rental units. Assuming this percentage translates into a steady stream of potential Section 8 tenants, the investment could be worthwhile.
If demand is uncertain: The lack of data on DOM introduces uncertainty about the speed at which properties are leased. Landlords will need to consider other local factors, such as job growth and housing trends, to gauge the likelihood of finding tenants promptly.
In conclusion, the decision to invest in ZIP 47040 for Section 8 properties hinges on the ability of the FMR to cover debt service, the relationship between FMR and market rent, and the certainty of rental demand. If all conditions favorably align, then the answer is a clear yes. Otherwise, it depends on further analysis of local market dynamics and financial planning.
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.