Location: Henry County, IN | Metro: Henry 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 | $810 |
| 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 |
|---|---|---|---|---|
| 1BR | $810 | $79,387 | 1.02% | B |
| 2BR | $1,010 | $113,657 | 0.89% | C |
| 3BR | $1,210 | $198,702 | 0.61% | D |
| 4BR | $1,340 | $238,875 | 0.56% | F |
| 5BR | $1,554 | $267,465 | 0.58% | F |
U.S. Census Bureau data (2024)
New Castle, IN, with a total population of 29,337, is a modest-sized community where nearly 27.6% of residents are renters. The median household income stands at $60,258, indicating a middle-class area. Median home values in the region are assessed at $165,965, reflecting a relatively affordable housing market.
The rent economics in ZIP code 47362 present an interesting opportunity. The Fair Market Rent (FMR), which is set by HUD for the metro area in fiscal year 2026, is pegged at $960. In contrast, the actual market rent, measured by ZORI (Zillow Observed Rental Index), is lower at $907. This suggests a slight premium for properties that qualify under the Section 8 program, potentially offering a margin for landlords to cover maintenance costs and property management fees.
Given these metrics, ZIP 47362 would suit both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the stable demand from renters and the government-backed Section 8 payments provide a reliable income stream. The discrepancy between FMR and market rent means that there's room for slightly higher rents without deterring tenants eligible for vouchers.
Value-add buyers, on the other hand, might find opportunities to improve properties and increase their rental value closer to the FMR level, thereby maximizing their returns while still attracting Section 8 participants. With a median income of $60,258, there's a reasonable buffer between tenant incomes and the cost of living, supporting the viability of such investments.
In summary, New Castle, IN's ZIP 47362 offers a balanced environment for both types of investors. It provides a steady flow of Section 8 tenants and allows for strategic property enhancements to capitalize on the difference between FMR and market rent rates.
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.