Location: Washington County, IN | Metro: Louisville, 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 | $820 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,350 |
| 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,350 | $251,314 | 0.54% | F |
U.S. Census Bureau data (2024)
The ZIP code 47120 represents a market that is moderately renter-heavy but not dominated by renters. With a population of 960, only 18.4% are renters, indicating that homeownership is still prevalent in this area. However, the presence of renters suggests there is some demand for rental properties, particularly among those who might rely on housing vouchers.
The median household income in ZIP 47120 is $42,440. The typical market rent of $1,056 per month represents approximately 25% of the median monthly income when calculated over a year. This percentage is significant and indicates that rent is a substantial expense for many households in this area. It also implies that tenants may be particularly sensitive to rent increases and could require financial assistance through housing vouchers to afford their living space.
The Fair Market Rent (FMR) for ZIP 47120 is set at $1,010 for FY 2024, which is slightly below the current market rent of $1,056. This difference highlights that landlords might face challenges in attracting voucher holders, as the subsidy amount may not fully cover the cost of renting a property at market rates. Landlords will need to consider this gap when setting rents or accepting voucher tenants.
A landlord in ZIP 47120 can expect a tenant profile that includes individuals and families who are likely to have lower incomes and may depend on housing vouchers to offset the cost of rent. These tenants are often seeking affordable housing options and may prioritize properties that offer stability and value for their money. Given the income levels and the relatively high proportion of income dedicated to rent, it's crucial for landlords to maintain competitive pricing and ensure their properties meet the quality standards required for voucher acceptance.
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.