Section 8 Fair Market Rent (FMR) for ZIP 47201 - 2027

Investment Score for ZIP 47201

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	$1,320
1 Bedroom	$1,330
2 Bedrooms	$1,560
3 Bedrooms	$1,860
4 Bedrooms	$2,230
5 Bedrooms	$2,587
6 Bedrooms	$2,897
7 Bedrooms	$3,129
8 Bedrooms	$3,285

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	$1,330	$136,251	0.98%	C
2BR	$1,560	$179,429	0.87%	C
3BR	$1,860	$264,984	0.7%	D
4BR	$2,230	$402,829	0.55%	F
5BR	$2,587	$534,754	0.48%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 47201 (Columbus, IN) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 47201 is set by HUD for 2026, with specific figures for different bedroom sizes. For a two-bedroom unit, the FMR is $1,430, which represents approximately 20.4% of the median household income of $83,958. This indicates that the rent for a two-bedroom unit is relatively affordable compared to the average income in the area. However, it is important to understand how these FMRs compare to actual rental prices in Columbus, IN. According to Zillow, the median price for a two-bedroom home in ZIP 47201 is $176,317. The price-to-FMR ratio for a two-bedroom unit is 10.3 times, suggesting that the median home price is significantly higher than the rent. This means that landlords who participate in the Section 8 program must ensure their rents do not exceed the FMR limits, which can be a constraint for those looking to maximize their rental income. For example, a landlord renting a two-bedroom unit would be limited to $1,430 per month under the Section 8 program, whereas the market might allow them to charge more. #### Affordability & Renter Profile ZIP code 47201 has a population of 47,900, with 36.8% of residents being renters. This suggests a significant portion of the local population relies on rental housing, indicating a strong demand for rental properties. The occupancy rate of 94.4% further supports the notion that the rental market is tight, with most units occupied. Given the median household income of $83,958, many renters might find it challenging to afford market-rate rentals, making subsidized housing like Section 8 vouchers particularly attractive. The FMR for a two-bedroom unit at $1,430 is indeed affordable for the average household, but it may still pose challenges for lower-income families. With 20.4% of the median income going towards rent, there is a clear affordability gap for those earning below the median. This dynamic creates a situation where the demand for affordable housing is high, and the supply of units that fit within the FMR guidelines is likely limited. #### Investor Angle From an investor perspective, participating in the Section 8 program can be financially viable if the rent collected aligns closely with the FMR. In ZIP 47201, the FMR for a two-bedroom unit is $1,430, which is a reasonable rent amount given the local median income. To determine if this ZIP code is cash-flow positive, we need to consider the typical expenses associated with rental properties, such as mortgage payments, property taxes, insurance, maintenance, and utilities. Assuming a conservative estimate of 50% of the rent covering all expenses, a landlord could expect to net around $715 per month from a two-bedroom unit. This is a positive cash flow, especially considering the stability provided by government-backed vouchers. The investment grade for this ZIP code would be considered moderate to good, given the strong demand for rental housing and the relatively low vacancy rates. #### Specific Actionable Insights 1. **Focus on Two-Bedroom Units**: Given the FMR for a two-bedroom unit is $1,430 and the median home price is $176,317, investing in two-bedroom properties could provide a balance between affordability and market demand. The price-to-FMR ratio of 10.3x suggests that while the purchase price is high, the monthly rent is within a manageable range for many households. 2. **Understand Local Rental Market Trends**: While the FMR provides a guideline, understanding the local rental market trends is crucial. If actual rents are consistently higher than the FMR, landlords may struggle to fill units through the Section 8 program. Conversely, if actual rents are close to or below the FMR, the program could be a reliable source of tenants. 3. **Consider Property Management Costs**: Investors should carefully calculate the total cost of ownership, including property management fees. If the net cash flow after expenses is positive, then participating in the Section 8 program can be a sound investment strategy. However, if costs exceed the FMR, it may not be financially feasible. #### Bottom Line For Section 8-focused investors, ZIP code 47201 presents a moderately positive opportunity. The strong demand for rental housing, coupled with a high occupancy rate, suggests a stable market. However, the high price-to-FMR ratio indicates that investors should be cautious about the purchase price and ensure that the net cash flow remains positive after accounting for all expenses. **Recommendation**: **Buy**. The combination of a robust rental market and a reasonable FMR makes this ZIP code a viable option for investors interested in the Section 8 program. However, careful financial planning and due diligence are essential to ensure profitability.

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.