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 | $890 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,490 | $293,001 | 0.51% | F |
U.S. Census Bureau data (2024)
The renter's landscape in ZIP 47147 presents an interesting scenario when considering the financial dynamics between market rates and government assistance. The median income for households in this area stands at $110,556, which is notably high. However, the market rate for rent is set at $1,403 according to the Census American Community Survey (ACS), indicating a significant cost burden for those relying solely on rental income.
To put this into perspective, let’s compare the market rate to the federal payment standard for housing vouchers, which is set at $1,280 for ZIP 47147 in fiscal year 2024. This means that for a household receiving a voucher, they would be required to pay the difference between the market rate and the voucher amount, totaling $123 per month. This calculation reveals a modest gap but still represents a substantial monthly expense for tenants.
The ZIP code has a relatively low percentage of renters at 11.4%, with a total population of 1,317. Given these numbers, it’s evident that the rental market is not densely populated, leading to potentially less competitive pressure among landlords. However, the affordability gap between the market rate and the voucher payment standard could influence the decision-making process of potential tenants.
For landlords considering their strategy regarding voucher versus cash-paying tenants, the data suggests a balanced approach. While the voucher payment standard is slightly lower than the market rate, the additional $123 paid by tenants provides a steady, predictable income stream. Moreover, given the high median income and the manageable gap, there is likely a pool of tenants who can afford the full market rate, offering landlords the flexibility to choose based on their preference for guaranteed payments or higher overall income.
The takeaway for landlords is clear: ZIP 47147 offers a unique opportunity where both voucher and cash-paying strategies can be viable. Landlords should weigh the benefits of guaranteed payments against the possibility of securing higher rents from tenants with the ability to pay the full market rate. This analysis supports a diversified approach to tenant selection, ensuring a stable income while also capitalizing on the area's economic strength.
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.