Location: Lawrence 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,040 | $138,812 | 0.75% | D |
| 3BR | $1,320 | $226,862 | 0.58% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 47260, which encompasses Medora, IN, reveals a significant gap between the Federal Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,000, while the Census ACS reports the market rent at $894. This results in a gap of $106, or 12%, between what landlords can charge through the Section 8 program and the prevailing market rates.
Given that the FMR exceeds the market rent, it becomes evident that voucher tenants can enhance the rental yield for landlords. In Medora, where only 8.6% of residents are renters, landlords can leverage the higher FMR to achieve better returns on their investment properties. With a median home value of $196,478 and a median income of $73,370, the disparity between FMR and market rent offers an opportunity to attract stable, long-term tenants who benefit from government subsidies, thereby reducing vacancy risks and increasing cash flow predictability.
However, the cost of housing voucher tenants below open-market rates must also be considered. Landlords might face limitations on rent increases, which could affect the long-term profitability of their properties if market rents rise faster than the FMR adjustments. Additionally, voucher programs often come with regulatory compliance requirements that can add administrative burdens. Despite these challenges, the current gap suggests that participating in the Section 8 program can still be financially advantageous for landlords in Medora, given the relatively low rental market saturation and the economic profile of the area.
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.