Location: Jackson County, IN | Metro: Indianapolis-Carmel, IN HUD Metro FMR Area
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 | $780 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $213,578 | 0.47% | F |
| 3BR | $1,310 | $275,837 | 0.47% | F |
U.S. Census Bureau data (2024)
The ZIP code 47235, located in Freetown, IN, is not particularly heavy in renters, with only 6.2% of the population renting homes. This indicates that the area is predominantly homeowner-dominated, which means there might be a scarcity of tenants who rely on housing vouchers such as Section 8. The total population of 1,672 residents further suggests a limited pool of potential tenants.
The median household income in Freetown, IN is $73,963, while the average market rent stands at $687. This implies that the typical rent consumes approximately 10.2% of the local median income. To calculate this percentage, we use the formula: ($687 / $73,963) * 100 = 0.923%, rounded up to 10.2%. This relatively low rent-to-income ratio can be seen as positive for landlords, as it indicates that most residents can afford their rent without significant financial strain.
However, comparing the market rent to the Fair Market Rent (FMR) of $1,170 for FY 2024 shows that the actual rents are significantly lower than the FMR. This discrepancy suggests that landlords in Freetown may find it challenging to attract tenants with Section 8 vouchers, as the vouchers are often pegged to the FMR, which is higher than what the market currently supports. Landlords might need to adjust their expectations regarding rental income and consider the possibility of renting to voucher holders at a rate below the FMR.
In terms of the tenant profile, landlords in Freetown should expect a mix of middle-income earners who can pay market rates and possibly some lower-income individuals who might require assistance through housing vouchers. Given the homeowner-dominated nature of the area, the demand for rental properties is likely to be moderate, and landlords will have to compete based on property quality and location rather than solely on price.
To summarize, while the rent-to-income ratio is favorable at around 10.2%, the scarcity of voucher holders due to the homeowner-dominated landscape makes attracting Section 8 tenants a challenge. Landlords must be prepared to cater to a diverse tenant base, including those who might benefit from housing subsidies, but they should also recognize that the overall rental market in Freetown is smaller compared to areas with higher percentages of renters.
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.