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 | $860 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,170 | $278,374 | 0.42% | F |
| 3BR | $1,530 | $365,619 | 0.42% | F |
| 4BR | $1,640 | $426,057 | 0.38% | F |
U.S. Census Bureau data (2024)
The median income in ZIP 47041, which encompasses Sunman, Indiana, stands at $81,016. At first glance, this might seem sufficient to cover the market rate rent of $923, but a closer look reveals significant challenges for renters. The market rate already exceeds 40% of the median household income, placing a substantial financial burden on residents.
Comparatively, the Fair Market Rent (FMR) set by HUD for zip code 47041 in fiscal year 2024 is $990. This figure represents the maximum amount a Section 8 voucher holder can pay towards rent, with the remainder subsidized by the government. Despite being slightly higher than the market rate, the FMR still poses a challenge for households earning the median income, as it further stretches their budget.
In ZIP 47041, only 12.5% of the 5,884 population are renters. This indicates a relatively low demand for rental properties, suggesting that landlords face stiff competition for tenants. The affordability gap between median income and both the market rate and FMR highlights the difficulty many potential renters face in finding suitable housing.
For landlords considering their tenant selection strategy, focusing on voucher holders can provide a stable source of income, though it comes with administrative complexities and potential delays in payments. On the other hand, attracting cash-paying tenants who earn above the median income could alleviate some of these issues, but the limited number of such individuals in the area makes this approach less feasible.
The takeaway for landlords is clear: while voucher holders ensure consistent rental payments, the overall financial landscape of ZIP 47041 suggests a need to balance between securing tenants and maintaining competitive pricing. Landlords should prepare for a market where affordability is a critical concern and where the majority of potential tenants will likely require assistance to meet even the subsidized costs of housing.
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.