Location: Lawrence County, IN | Metro: Bloomington, 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 | $850 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,100 | $216,513 | 0.51% | F |
| 3BR | $1,390 | $267,379 | 0.52% | F |
U.S. Census Bureau data (2024)
Investing in Section 8 properties in ZIP 47264, Brownstown, IN, presents several challenges that must be carefully considered. Tenant turnover can be a significant issue, especially when comparing the local market rent to the Fair Market Rent (FMR) of $1130 for FY 2024. Although the exact market rent is not available, it's important to note that higher FMRs often correlate with higher turnover rates if the local market does not support such rents.
Vacancy exposure is another critical risk factor. With an unknown number of days on the market (DOM), it's difficult to predict how quickly a property might fill. High vacancy rates can lead to extended periods without rental income, which directly impacts profitability. Additionally, the typical home value of $251,359 and median income of $57,917 suggest that there may be deferred maintenance issues. Landlords should be prepared for potential higher-than-average repair costs, as lower incomes may result in less well-maintained homes over time.
However, these risks are tempered by the high renter share of 9.8%. A significant portion of the population renting suggests strong demand for housing vouchers, which can stabilize occupancy and provide a steady stream of rental income. The presence of many renters also indicates a diverse tenant pool, potentially reducing the impact of individual tenant turnovers.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.