Location: Orange County, IN | Metro: Washington County, 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 | $840 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,110 | $136,218 | 0.81% | C |
| 3BR | $1,340 | $214,964 | 0.62% | D |
| 4BR | $1,460 | $255,077 | 0.57% | F |
U.S. Census Bureau data (2024)
A landlord considering purchasing a property in ZIP code 47108 for Section 8 purposes must navigate several key factors to make an informed decision. The first step is to determine if the Fair Market Rent (FMR) of $920 for the fiscal year 2024 can cover the debt service on a property valued at $195,921. This requires calculating the monthly mortgage payment, including principal, interest, taxes, and insurance. Assuming a standard mortgage rate and a typical down payment, the monthly debt service would likely be higher than $920, making the answer to the first question a no. A property with such a value will not be profitable under the current FMR without additional rental income.
The second consideration is comparing the market rent of $744 against the FMR. In ZIP 47108, the market rent is below the FMR, indicating that properties rented through Section 8 would command a higher price than the average market rent. This suggests that there is potential for landlords to earn more than the typical market rates if they secure Section 8 tenants, leading to a yes on this point. However, this alone does not guarantee profitability due to the high debt service costs.
The third factor involves assessing the demand for rental properties. In ZIP 47108, 16.9% of residents are renters, but the days on the market (DOM) for rentals is listed as N/A, which means there is insufficient data to evaluate how quickly rental units are typically filled. Given the limited information, the answer to this question is it depends. If the local real estate market is robust and rental units fill quickly, then the demand might be sufficient to support Section 8 investments. Conversely, if there is a surplus of rental units or economic conditions are poor, the demand could be insufficient.
In summary, while the FMR in ZIP 47108 exceeds the market rent, making it potentially attractive for Section 8 investments, the high property values mean that the FMR alone cannot cover the debt service. Therefore, landlords must either find ways to reduce their acquisition costs or seek additional sources of income to ensure profitability. The lack of data on the speed of rental unit turnover adds another layer of uncertainty, necessitating further investigation into local market dynamics before making a final decision.
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.