Section 8 Fair Market Rent (FMR) for ZIP 47150 - 2027

Investment Score for ZIP 47150

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	$960
1 Bedroom	$1,040
2 Bedrooms	$1,250
3 Bedrooms	$1,600
4 Bedrooms	$1,840
5 Bedrooms	$2,134
6 Bedrooms	$2,390
7 Bedrooms	$2,581
8 Bedrooms	$2,710

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,040	$121,039	0.86%	C
2BR	$1,250	$172,037	0.73%	D
3BR	$1,600	$245,226	0.65%	D
4BR	$1,840	$329,813	0.56%	F
5BR	$2,134	$401,468	0.53%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 47150 (New Albany, KY) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 47150 in New Albany, KY, for 2026 indicate that a two-bedroom unit is priced at $1250 per month. This figure represents 23.9% of the median household income in the area, which stands at $62,820. The Housing Choice Voucher Program, commonly known as Section 8, provides rental assistance to low-income families, seniors, and people with disabilities. However, the actual rent charged by landlords often exceeds the FMR, creating constraints for voucher holders. To understand these dynamics better, let's consider the Zillow median price for a two-bedroom property, which is $168,211. Given the Price-to-FMR ratio of 11.2x, it suggests that the median price of a two-bedroom home is significantly higher than the monthly rent. This ratio indicates that the cost of purchasing a home is much greater than the cost of renting, which can be a challenge for voucher holders who might struggle to find units where the rent is within their budget. #### Affordability & Renter Profile In ZIP code 47150, 37.7% of the population are renters, indicating a substantial demand for rental properties. With a median household income of $62,820, the affordability of housing is a critical issue. The occupancy rate of 90.9% suggests that the rental market is relatively tight, with few vacant units available. This high occupancy rate can lead to upward pressure on rents, making it even harder for low-income households to find affordable housing. Given that 23.9% of the median income goes towards a two-bedroom unit, it implies that many residents are spending a significant portion of their earnings on housing. This scenario is particularly challenging for those relying on Section 8 vouchers, as they must find landlords willing to accept the voucher amount. The median rent for a two-bedroom unit is $1250, which is already a considerable expense for many residents. If actual rents exceed this amount, the situation becomes even more difficult. #### Investor Angle From an investor perspective, the ZIP code 47150 offers potential opportunities but also challenges. The FMR for a two-bedroom unit is set at $1250, which is the maximum amount that a landlord can charge if they wish to participate in the Section 8 program. To determine whether this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with owning and managing rental properties. Assuming a typical mortgage payment of around $800-$900 based on the median home price of $168,211 and current interest rates, along with other expenses such as property taxes, insurance, maintenance, and management fees, the total monthly costs could range from $1000-$1200. Therefore, at an FMR of $1250, the cash flow would likely be minimal or negative, especially when factoring in vacancy periods and other unforeseen costs. The investment grade of this ZIP code can be considered moderate. While there is a strong demand for rental properties, the tight market and high occupancy rate mean that competition among landlords is fierce. Additionally, the reliance on Section 8 vouchers means that investors must navigate the complexities of the program, including regular inspections and compliance with HUD regulations. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high occupancy rate and the significant portion of income spent on housing, investors should focus on smaller units like one-bedroom or studio apartments. These units have lower FMRs ($1030 for 1BR), potentially allowing for better cash flow while still serving the needs of low-income residents. 2. **Consider Location-Specific Strategies**: In a tight market, location plays a crucial role. Investors should look for areas within ZIP code 47150 that have slightly lower occupancy rates or higher concentrations of low-income households. This strategy can help in securing tenants more easily and maintaining steady cash flow. 3. **Engage with Local Landlords**: Building relationships with local landlords who are already familiar with the Section 8 program can provide valuable insights into the market dynamics and tenant preferences. This collaboration can also help in understanding how to structure rental agreements and manage properties effectively under the program. #### Bottom Line For Section 8-focused investors, ZIP code 47150 presents a mixed picture. While the demand for rental properties is high, the tight market and high occupancy rates make it challenging to secure positive cash flow at the FMR levels. Therefore, the recommendation for this ZIP code is to **Hold**. Investors should carefully evaluate their portfolio and consider diversifying into smaller units or areas with slightly lower occupancy rates to improve their chances of success. In summary, the high demand and limited supply make ZIP code 47150 a competitive market, but the financial constraints imposed by FMR and the complexity of the Section 8 program suggest that cautious investment strategies are necessary.

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.