Section 8 Fair Market Rent (FMR) for ZIP 47125 - 2027

Location: Orange County, IN | Metro: Louisville, KY-IN HUD Metro FMR Area

Investment Score for ZIP 47125

D
Monthly Rent (2BR)
$1,250
Median Price (2BR)
$180,150
1% Rule
0.69%
Annual Yield
8.33%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$940
1 Bedroom$980
2 Bedrooms$1,250
3 Bedrooms$1,590
4 Bedrooms$1,800
5 Bedrooms$2,088
6 Bedrooms$2,339
7 Bedrooms$2,526
8 Bedrooms$2,652

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $1,250 $180,150 0.69% D
3BR $1,590 $217,828 0.73% D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
1,988
Median Household Income
$73,421
Housing Units
834
Renter Percentage
15.4%
Occupancy Rate
83.9%
Renter Occupied
108

Hardinsburg, Indiana, located in ZIP code 47125, stands out in Washington County with a population of 1,988 residents. The area has a rental rate of 15.4%, indicating that a significant portion of the community is invested in homeownership rather than renting. The median household income is $73,421, reflecting a middle-class demographic. Additionally, the median home value in Hardinsburg is $205,005, which is notably higher than the national average, suggesting a stable and possibly affluent local housing market.

The voucher economics in Hardinsburg present an interesting dynamic. The Fair Market Rent (FMR) for the area, set at $1,260 for fiscal year 2024, significantly exceeds the market rent of $875 based on Census ACS data. This disparity indicates that landlords could potentially benefit from participating in the Section 8 program, as they would receive higher rents than the current market rate. However, it also implies that there might be limited demand for Section 8 vouchers due to the relatively low number of renters and the high median home value.

Based on the data signature, Hardinsburg appears to be a stable ZIP code. The higher median home value suggests that the area is attractive for long-term investment, while the lower rental rate indicates that the community is primarily focused on owning homes. The income level supports this stability, as it allows residents to afford both the cost of living and property values in the area. Despite the potential benefits of the Section 8 program for landlords, the overall economic indicators suggest that the area is not undergoing significant transitional changes.

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.