Location: Switzerland County, IN | Metro: Jefferson County, IN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
U.S. Census Bureau data (2024)
ZIP 47224, located in Switzerland County, IN metro, is best suited as a cash-flow anchor within a Section 8 portfolio strategy. This classification is based on the significant spread between the Fair Market Rent (FMR) for FY 2026 and the local market rents, as well as the median home value.
The FMR for the Switzerland County, IN metro area in FY 2026 is set at $960, which is notably lower than the market rent of $1,051. This means that landlords participating in the Section 8 program can expect to receive a rental subsidy that bridges the gap between the FMR and the market rate, ensuring a steady and predictable cash flow. The difference of $91 per unit represents a consistent financial buffer that supports the operational costs and profitability of the investment.
Furthermore, the median home value in ZIP 47224 stands at $329,408. Given the relatively low FMR compared to the median home value, the potential for high occupancy rates is strong. Section 8 tenants are typically reliable payers, reducing the risk of vacancy and ensuring a stable revenue stream.
While the appreciation play and diversification aspects do not provide specific data points to analyze (indicated by N/A% price-cut share and N/A-day days on market), the renter share and median income offer some insight into the local housing market. With a renter share of 31.9%, there is a notable segment of the population that relies on rental properties. Additionally, the median income of $61,618 suggests that a portion of the renters may qualify for the Section 8 program, further supporting the viability of this ZIP code as a cash-flow anchor.
In summary, ZIP 47224 should be considered a cash-flow anchor due to the substantial spread between the FMR and market rents, the reliability of Section 8 tenants, and the potential for high occupancy rates. These factors make it an attractive option for landlords and small-portfolio investors seeking stable returns.
Data Sources: FMR data from HUD (2027). 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.