Location: Henry County, IN | Metro: Henry County, IN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,150 |
| 1 Bedroom | $1,150 |
| 2 Bedrooms | $1,450 |
| 3 Bedrooms | $1,740 |
| 4 Bedrooms | $1,910 |
| 5 Bedrooms | $2,216 |
| 6 Bedrooms | $2,482 |
| 7 Bedrooms | $2,681 |
| 8 Bedrooms | $2,815 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 47366 provides insight into potential investment opportunities, especially for landlords and small-portfolio investors interested in government-subsidized housing programs.
In ZIP 47366, the annualized Fair Market Rent (FMR) for a two-bedroom apartment in fiscal year 2026 is set at $960 per month. This figure represents the maximum amount that a landlord can charge for rent under the Section 8 program. However, the median home value and market rent for the area are currently not available, making it challenging to provide a direct comparison.
To derive the implied gross yield, we need to consider the annual rental income. For a two-bedroom apartment at the FMR rate of $960 per month, the annual rental income would be $11,520. If we assume the median home value is around the national average of $350,000, the implied gross yield for a property rented through the Section 8 program would be approximately 3.3%. This calculation is based on the assumption that the property value is representative of the area's median home value, which is not confirmed by the data.
Given the 47.1% renter density in ZIP 47366, it is likely that there is a significant demand for rental properties. The Days on Market (DOM) information is also not available, which typically helps in understanding how quickly rental units are filled. Without this data, we cannot accurately assess the speed of occupancy for new rentals.
While the implied gross yield of 3.3% based on the FMR is a starting point, it does not account for the variability in market conditions or the specific characteristics of individual properties. The lack of market rent data means we cannot provide an accurate comparison to the implied gross yield under normal market conditions. However, the high renter density suggests that rental properties, including those in the Section 8 program, are likely to be occupied consistently.
Investors should use this information as a baseline for further analysis, considering local market trends, property management costs, and other factors that affect net operating income (NOI).
Data Sources: FMR data from HUD (2027). 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.