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 | $810 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,070 | $176,087 | 0.61% | D |
| 3BR | $1,290 | $238,501 | 0.54% | F |
| 4BR | $1,440 | $323,883 | 0.44% | F |
U.S. Census Bureau data (2024)
New Pekin, Indiana, located in ZIP code 47165, is a modest-sized community with a total population of 6,292 residents. Only 10.5% of these residents are renters, indicating a predominantly owner-occupied area. The median household income stands at $79,744, which is relatively high, suggesting a middle-class to upper-middle-class neighborhood. The median home value in the area is $233,449, reflecting a stable housing market where property values are solid but not extraordinarily high.
Moving into the economic landscape of rental properties, the Fair Market Rent (FMR) for ZIP code 47165, as set by HUD for fiscal year 2024, is $1010. This contrasts sharply with the market rent reported by the Census Bureau's American Community Survey (ACS), which is $819. The difference between the FMR and the market rent implies a potential opportunity for landlords who can leverage the higher FMR rates offered through the Section 8 program to achieve better rental income.
The question then arises: does this area suit a hands-off voucher operator or a hands-on value-add buyer? Given the low percentage of renters and the significant gap between FMR and market rent, it leans more towards a hands-on value-add buyer. Such an investor would likely focus on improving properties to meet the quality standards required for the Section 8 program, thereby justifying the higher rents. A hands-off operator might find the low demand for rentals challenging, as only a small portion of the population is looking for rental options.
In summary, ZIP 47165 presents a niche opportunity for hands-on investors willing to enhance their properties to capture the benefits of the Section 8 program. The higher FMR compared to the market rent offers a financial incentive for those who can manage the additional requirements and oversight associated with the program. For landlords seeking a passive investment, this ZIP code may not be the most suitable due to its limited rental market.
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.