Location: Crawford County, IN | Metro: Washington County, 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 | $790 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,040 | $157,280 | 0.66% | D |
| 3BR | $1,380 | $217,102 | 0.64% | D |
| 4BR | $1,530 | $307,563 | 0.5% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 47145, located in Milltown, Indiana, reveals a unique balance between yield and stability that is attractive for certain types of real estate investments.
On the yield axis, the Federal Market Rent (FMR) for ZIP 47145 is set at $990 for fiscal year 2024. This figure is notably higher than the market rent of $879, indicating a potential opportunity for landlords to receive above-average rental income. However, the median home value of $209,487 suggests that the capital investment required for properties in this area is relatively substantial compared to the rental income. The difference between FMR and market rent points towards a modest premium for federally subsidized tenants, which can be a reliable source of income for those willing to navigate the complexities of Section 8 programs.
Moving to the stability axis, the data paints a picture of a moderately stable rental market. With 21.7% of residents being renters, there is a significant but not overwhelming portion of the population dependent on rental housing. The lack of available data on the number of days on market (DOM) indicates either a lack of recent turnover or insufficient data to draw conclusions. Nevertheless, the average household income of $48,434 provides a reasonable basis for assessing tenant financial stability. This income level is sufficient to support the median market rent of $879, but it does not leave much room for higher rents without careful tenant selection.
Considering both yield and stability, ZIP 47145 falls into a category of a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The primary driver for this classification is the relatively low proportion of renters and the moderate income levels that support the current market rents but limit the upside for significantly higher rents. Additionally, the presence of a federal rent subsidy at a rate higher than the market suggests a dependable stream of income, albeit with the regulatory requirements of the Section 8 program.
To summarize, the combination of a modestly higher FMR compared to market rent and the average household income supports a steady cash flow for landlords who are prepared to manage Section 8 properties. This makes the area suitable for investors seeking consistent returns over time rather than quick flips or high-risk, high-reward scenarios.
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.