Location: Perry 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 | $760 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,020 | $144,131 | 0.71% | D |
| 3BR | $1,410 | $199,907 | 0.71% | D |
U.S. Census Bureau data (2024)
ZIP 47137, located in Perry County, Indiana, is an ideal candidate for inclusion in a Section 8 portfolio strategy due to its characteristics as a cash-flow anchor. The area's Federal Market Rent (FMR) for FY 2024 is set at $1130, which is significantly higher than the current market rent of $769. This spread indicates that landlords can potentially charge more for rental properties than the average market rate, thereby increasing cash flow. Additionally, the median home value in ZIP 47137 is $171,761, which is relatively low, making it easier for landlords to acquire properties without a substantial upfront investment.
The median income in ZIP 47137 is $65,505, suggesting a stable tenant base that can afford to pay the higher rents supported by the FMR. This stability is crucial for maintaining consistent cash flow over time. While there is limited data on appreciation plays, with no percentage given for price-cut shares or days on the market (DOM), the focus should be on the immediate benefits of increased cash flow rather than speculative growth.
ZIP 47137 also offers opportunities as a diversifier, with 20.0% of residents being renters. However, the primary benefit here is the potential for higher cash flow, making it a strong anchor for a Section 8 portfolio. Landlords should leverage the higher FMR to ensure steady income from their investments in this ZIP code.
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.