Location: Franklin 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 | $930 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,670 |
| 4 Bedrooms | $1,830 |
| 5 Bedrooms | $2,123 |
| 6 Bedrooms | $2,378 |
| 7 Bedrooms | $2,568 |
| 8 Bedrooms | $2,696 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,270 | $291,890 | 0.44% | F |
| 3BR | $1,670 | $377,617 | 0.44% | F |
| 4BR | $1,830 | $468,418 | 0.39% | F |
U.S. Census Bureau data (2024)
In evaluating ZIP 47060, West Harrison, IN, for investment opportunities, several key concerns arise that need addressing with available data.
Objection 1: Will Fair Market Rent (FMR) of $1070 cover the mortgage on a $369,994 home?
The FMR of $1070 for ZIP 47060 is a critical figure when considering rental income. To determine if it will sufficiently cover the mortgage on a $369,994 home, we must consider the typical mortgage rates and terms. Assuming a standard 30-year fixed-rate mortgage at an average rate of 5%, the monthly mortgage payment on a $369,994 home would be approximately $1,980. This amount exceeds the FMR, indicating that relying solely on rental income to cover the mortgage might not be feasible without additional income sources or a higher rent rate. However, it's important to note that property values and mortgage rates can fluctuate, so further analysis is recommended to adjust for current market conditions.
Objection 2: Is there enough renter demand at 10.9%?
The percentage of renters in ZIP 47060 stands at 10.9%. This figure suggests a relatively low demand for rental properties compared to areas with higher percentages of renters. For landlords and small-portfolio investors, this could mean a smaller pool of potential tenants, which might affect vacancy rates and the ability to fill units quickly. While 10.9% indicates a niche market, it also suggests that rental properties could command premium prices due to lower competition, but this would require thorough market research to confirm. Additionally, understanding the local economy and employment trends is crucial to gauge the stability and growth potential of the rental market in this area.
Objection 3: Will vouchers keep pace with $960 market rents?
The market rent in ZIP 47060 is set at $960. Vouchers are a significant source of income for some rental properties, especially those targeting lower-income tenants. However, the data does not specify the current value of Housing Choice Vouchers (Section 8) in this zip code. Generally, voucher amounts are adjusted annually based on federal guidelines and local housing market conditions. If the voucher amount is below $960, landlords might face a shortfall unless they can secure tenants willing to pay the difference between the voucher amount and the market rent. Conversely, if the voucher amount is close to or above $960, it can effectively support the market rent, making Section 8 properties viable investments. Investors should verify the latest voucher amounts from the local Public Housing Agency to make informed decisions.
To summarize, while ZIP 47060 presents certain challenges such as the high mortgage payment relative to FMR and limited renter demand, it also offers opportunities through potentially commanding premium rents due to lower competition. The viability of Section 8 properties hinges on the alignment of voucher amounts with market rents, which requires up-to-date information from local authorities. These points underscore the importance of detailed market analysis and understanding local economic factors before investing.
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.