Location: Jennings County, IN | Metro: Jefferson 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 | $770 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,350 | $224,690 | 0.6% | D |
U.S. Census Bureau data (2024)
The ZIP code 47231 represents a small, tight-knit community with a total population of 675 residents. Over half of these residents, specifically 51.6%, are renters, indicating a significant demand for rental properties in the area. The median household income in ZIP 47231 is $42,332, which is modest but provides a stable economic foundation for the local tenants. The median home value stands at $222,808, suggesting that while property values are not extraordinarily high, they offer a reasonable investment opportunity.
Moving into the specifics of the rental market, the Fair Market Rent (FMR) for ZIP 47231, as set by HUD for metro areas in fiscal year 2026, is $1,080. This figure contrasts sharply with the actual market rent, which is reported to be $2,025 according to the latest Census ACS data. This significant gap between FMR and market rent suggests a potential opportunity for landlords who can manage properties effectively and attract Section 8 tenants willing to pay the subsidized rate.
Given the demographic and economic conditions, ZIP 47231 is well-suited for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the presence of a sizeable tenant pool eligible for the Section 8 program ensures a steady stream of rental income without the need for extensive property management. On the other hand, value-add buyers can leverage the disparity between FMR and market rents to renovate and improve properties, thereby increasing their attractiveness to non-subsidized tenants and potentially commanding higher rents once improvements are made.
In conclusion, ZIP 47231 offers a balanced environment where landlords can capitalize on the existing demand for affordable housing while also having the flexibility to pursue value-add strategies. The combination of a moderate median income and a substantial percentage of renters creates a favorable landscape for Section 8 investments, making it an attractive option for both types of real estate investors.
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.