Location: Jackson County, IN | Metro: Jackson County, IN
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 | $790 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,370 |
| 5 Bedrooms | $1,589 |
| 6 Bedrooms | $1,780 |
| 7 Bedrooms | $1,922 |
| 8 Bedrooms | $2,018 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,040 | $177,350 | 0.59% | F |
| 3BR | $1,320 | $261,936 | 0.5% | F |
| 4BR | $1,370 | $365,951 | 0.37% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $960 for ZIP 47220 (Brownstown, IN) in fiscal year 2026 will sufficiently cover the mortgage on a home valued at $246,218. To address this, consider that the typical mortgage payment for a home priced around $246,218, assuming a 20% down payment and a 30-year fixed-rate mortgage at an average interest rate of 4%, would be approximately $1,065 per month. This leaves a shortfall of roughly $105 per month if relying solely on the FMR. However, it's important to note that the FMR represents the maximum rent that a household participating in the Housing Choice Voucher program can pay, not the actual rent collected. Landlords often receive additional subsidies to make up the difference.
The investor could also argue that the rental demand appears low at 14.4% of the total housing units. This percentage suggests that only a portion of the population is actively seeking rentals, which might indicate limited opportunities for landlords. Yet, this figure does not account for the potential demand from voucher holders. In fact, the presence of voucher holders can significantly boost rental demand, as they provide a reliable source of income regardless of the market's natural fluctuations. Therefore, while the natural rental demand may be modest, the inclusion of subsidized renters can stabilize and even increase occupancy rates.
A final concern might be whether the Housing Choice Voucher program will keep pace with the market rents, which are currently at $709. The data indicates that the voucher amount is lower than the market rent, suggesting that landlords may not fully recover their costs from the voucher alone. However, as previously mentioned, landlords typically receive additional payments to bridge the gap between the voucher amount and the market rent. These supplemental payments ensure that landlords are compensated adequately, aligning with the overall market conditions.
In summary, while the data presents some challenges, such as the gap between FMR and mortgage payments, and the relatively low percentage of rental demand, the presence of voucher programs can mitigate these issues. It's crucial for investors to understand the full scope of financial support available through these programs to make informed decisions about investing in ZIP 47220.
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.