Location: Rush County, IN | Metro: Fayette 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 | $800 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $148,620 | 0.68% | D |
| 3BR | $1,210 | $232,337 | 0.52% | F |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 housing in ZIP code 47352 in Lewisville, IN, are significant. Tenant turnover is a critical issue, as the market rent stands at $706, which is notably lower than the Federal Market Rent (FMR) of $1,040 for the fiscal year 2026 in the metropolitan area. This disparity suggests that tenants may be more inclined to move when they find higher-paying jobs or better housing options, leading to increased vacancy rates.
Vacancy exposure is another concern, particularly due to the lack of data on days on market (DOM). This absence indicates an unreliable indicator for how quickly properties can be rented out, which poses a challenge for landlords who need to maintain steady cash flow. The typical home value in the area is $217,460, while the median income is $66,250. These figures highlight a deferred-maintenance exposure risk, as residents may struggle to afford necessary repairs and upkeep, potentially leaving landlords with the responsibility to maintain their properties at a higher cost.
However, these risks must be weighed against the 21.2% renter share in the area. High renter density typically translates into greater demand for housing vouchers, which can stabilize occupancy rates and provide a consistent source of rental income. The concentration of renters in ZIP 47352 can be seen as a positive factor, as it ensures a steady pool of potential tenants who are likely to be interested in affordable housing options.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 47352 is moderate. While there are notable challenges such as tenant turnover and maintenance costs, the high renter density offers a counterbalance by ensuring a robust demand for subsidized housing.
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.