Location: Ripley County, IN | Metro: Jennings 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 | $810 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,050 | $176,887 | 0.59% | F |
| 3BR | $1,380 | $230,808 | 0.6% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 47223 (Butlerville, IN) hinges on its unique blend of yield potential and market stability. On the yield axis, the area presents an interesting scenario with a Fair Market Rent (FMR) of $1,020 for the fiscal year 2026, indicating a moderate rental price point. Coupled with a median home value of $213,779, it suggests that the initial investment cost is relatively high. However, without specific market rent data, it's challenging to gauge the exact profit margin one might achieve through rental properties. This ambiguity places the yield potential in a middle ground, neither exceptionally high nor low.
Moving onto stability, Butlerville exhibits several characteristics that contribute to a somewhat stable but not highly secure environment. With only 16.7% of residents being renters, the market leans towards homeownership, which can limit the pool of potential tenants. The lack of data on days on market (DOM) makes it difficult to assess how quickly properties can be rented out. However, the average household income of $90,505 provides a reasonable financial cushion for tenants, suggesting that they are likely to be able to afford the $1,020 FMR. This income figure supports a level of tenant reliability, which adds to the stability of the market.
Given these factors, ZIP 47223 is best classified as a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The moderate rental prices combined with a decent average income suggest that while the returns might not be exceptionally high due to the significant upfront investment required to purchase property at $213,779, the cash flow can be steady and reliable. The lower percentage of renters does pose a challenge, but the income levels mitigate some of the risk associated with tenant turnover and delinquency.
To summarize, the market in Butlerville offers a balanced approach for landlords and small-portfolio investors looking for consistent returns without the volatility often seen in areas with higher rental yields and less stable incomes. The combination of a $1,020 FMR and $90,505 average income ensures that tenants can manage their rent payments, making it a suitable choice for those prioritizing stability over high-risk, high-reward investments.
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.