Location: Washington 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 | $830 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $181,283 | 0.56% | F |
| 3BR | $1,300 | $240,488 | 0.54% | F |
| 4BR | $1,480 | $308,067 | 0.48% | F |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP 47164 (Palmyra, IN) presents a nuanced picture for landlords and small-portfolio investors. With a median home value at $233,046, the market signals stability but also hints at limited upward pressure on property values in the near term. The absence of percentage data for listings that have been reduced and the median days on market (DOM) suggest that the local market is not experiencing significant volatility or rapid turnover, which typically correlates with strong pricing power.
On the rental side, the Fair Market Rent (FMR) for ZIP 47164 in fiscal year 2024 is set at $1020. This figure contrasts with the current market rate of approximately $913 based on Census ACS data. The gap between FMR and actual market rents indicates an opportunity for rental price increases, assuming that the market can sustain higher rates without negatively impacting occupancy levels. Landlords should monitor local economic indicators and tenant demand closely to gauge when and how much to adjust rents.
For long-term investors, the appreciation thesis in Palmyra is not as robust as it might be in other markets. The combination of a stable median home value and the lack of recent reductions in listing prices suggests that while the market is unlikely to decline sharply, it also lacks the dynamic conditions that typically lead to rapid appreciation. Investors should focus on generating income through rental yields rather than capital gains, especially given the current FMR versus market rent scenario.
A balanced approach is recommended for both short-term and long-term strategies. Short-term investors can capitalize on the rental market's potential for growth, while long-term investors should prepare for modest appreciation, if any, and concentrate on maintaining properties to ensure steady rental income. The setup implied by the data points towards a conservative investment environment where caution and strategic planning will be key to success.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.