Location: Scott 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 | $780 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $179,472 | 0.56% | F |
| 3BR | $1,300 | $285,660 | 0.46% | F |
| 4BR | $1,500 | $453,620 | 0.33% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 47126, located in Henryville, Indiana, reveals a unique balance between yield and stability that is neither a high-yield/low-stability flip-style market nor a purely steady-cashflow zone.
Yield Analysis: The Fair Market Rent (FMR) for ZIP 47126 in fiscal year 2024 is set at $1200. This FMR figure stands significantly above the market rent of $853, indicating a strong potential for rental income. However, when considering the median home value of $325,401, the yield appears moderate. Landlords can expect to see a positive cash flow, but it is not exceptionally high due to the relatively high property values.
Stability Analysis: Stability in this market is influenced by several factors. With only 7.2% of residents being renters, there is a lower demand for rental properties, which could lead to higher vacancy rates and less stable cash flows. Additionally, the median household income of $106,875 suggests that tenants have the financial capability to meet their rent obligations, thereby adding a layer of stability to the rental market. However, the lack of data on the number of days on market (DOM) makes it difficult to assess the speed at which properties are leased, which is an important indicator of market stability.
Based on these figures, ZIP 47126 leans towards a steady-cashflow zone rather than a high-yield/low-stability market. The strong FMR relative to market rents supports a healthy income stream, while the higher median home value and median income levels suggest a stable tenant base. However, the low percentage of renters points to a less dynamic rental market, potentially leading to periods of lower occupancy and thus less consistent cash flow.
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.