Location: Perry County, IN | Metro: Crawford 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 | $830 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $155,893 | 0.65% | D |
| 3BR | $1,400 | $218,799 | 0.64% | D |
| 4BR | $1,510 | $287,059 | 0.53% | F |
U.S. Census Bureau data (2024)
The potential pitfalls for Section 8 investments in ZIP code 47118, located in English, Indiana, are significant. Tenant turnover is a critical issue, with the market rent at $542 being substantially lower than the Fair Market Rent (FMR) of $960 for the metro area in fiscal year 2026. This disparity suggests that tenants might be drawn to the higher rental subsidies offered through Section 8, but it also implies they could leave when better opportunities arise, leading to increased vacancy exposure. The average days on market (DOM) for properties in this area is not available, which further complicates the prediction of how long a property might remain vacant between tenants.
Another risk factor is deferred maintenance. With a typical home value of $194,543 and a median household income of $41,579, homeowners may struggle to keep up with necessary repairs and improvements, especially if they rely heavily on rental income. This financial strain can result in subpar living conditions, potentially attracting scrutiny from housing authorities and increasing the likelihood of disputes over property standards.
Despite these challenges, there are mitigating factors that make Section 8 investments in ZIP 47118 worth considering. The renter share in the area stands at 17.2%, indicating a relatively high concentration of renters. High renter density typically correlates with greater demand for housing vouchers, which can stabilize the occupancy rate and provide a steady stream of tenants. Additionally, the FMR is set at a level that ensures landlords receive a reasonable subsidy, helping to offset some of the risks associated with tenant turnover and vacancy.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.