Location: Ripley County, IN | Metro: Ripley 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 | $760 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $187,287 | 0.54% | F |
| 3BR | $1,320 | $270,092 | 0.49% | F |
| 4BR | $1,340 | $337,037 | 0.4% | F |
U.S. Census Bureau data (2024)
The real estate market in Versailles, Indiana (ZIP 47042) presents a nuanced landscape for landlords and small-portfolio investors. With a median home value at $253,804, the current pricing reflects a stable but modestly valued housing sector. The lack of data on reduced listings and median days on market (DOM) suggests a market that is neither experiencing a significant downturn nor an overheated rush of sales. This stability implies that landlords can maintain their rents without facing substantial pressure from competing property values.
On the rental side, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is projected to be $960, compared to the current market rate of $773. This gap indicates potential for rental price increases, aligning with the expected rise in FMR. Landlords should prepare to adjust their rents upward to meet the anticipated market conditions, ensuring they remain competitive and profitable.
For long-term investors, the setup implies a realistic appreciation thesis based on the projected growth in rental values. As the rental market adjusts to closer alignment with the FMR, the underlying property values are likely to follow suit. However, the absence of data on recent reductions and DOM means there's no immediate signal of rapid appreciation or depreciation. Long-term investors should expect gradual growth, consistent with the broader economic trends affecting the region.
The median home value in ZIP 47042 also suggests that the area is relatively affordable, which could attract first-time homebuyers and those seeking to relocate to a lower-cost-of-living environment. This demographic trend supports the notion that property values will continue to rise, albeit slowly, as demand increases. Landlords can leverage this affordability to offer attractive lease terms that appeal to renters looking for value in their housing choices.
In summary, the current median home value and the anticipated rise in rental rates provide a foundation for steady appreciation in property values. Investors should focus on maintaining their properties and adjusting rents to stay competitive, positioning themselves for long-term gains as the market evolves towards the projected FMR levels.
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.