Location: Henry County, IN | Metro: Indianapolis-Carmel, IN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $900 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
U.S. Census Bureau data (2024)
A landlord considering investing in ZIP code 47384 (Shirley, IN) for Section 8 properties must follow a decision tree based on the following criteria:
1. Does FMR $1,060 (zip FY 2024) clear debt service on a $221,350 property?
Yes: The Fair Market Rent (FMR) of $1,060 is sufficient to cover the debt service on a property priced at $221,350. This means that the rental income can support the mortgage payments, property taxes, insurance, and other expenses associated with owning the property.
No: If the FMR of $1,060 does not clear the debt service, then the investment would not be financially viable under Section 8 guidelines. The landlord would need to either find a property with a lower purchase price or seek higher rents outside of the Section 8 program.
It Depends: If the margin between FMR and debt service is slim, the landlord needs to consider additional factors such as potential for property appreciation, long-term stability of the area, and personal risk tolerance.
2. Is market rent $728 (Census ACS) above, at, or below FMR?
Above: If the market rent of $728 is significantly below the FMR of $1,060, there is a strong incentive for landlords to participate in the Section 8 program. This indicates that the program offers a better return on investment compared to the local rental market.
At: If the market rent aligns closely with the FMR, the decision to invest in Section 8 becomes less about maximizing income and more about the stability and benefits of having a government-backed tenant.
Below: If the market rent exceeds the FMR, the landlord might prefer to rent out the property without participating in the Section 8 program, as they could potentially earn more from private tenants.
3. Are 11.4% renters + N/A-day days on market (DOM) enough demand?
Yes: If the percentage of renters is stable at 11.4%, and there is no significant data on days on market (DOM), it suggests that the demand for rental properties is consistent. This makes ZIP 47384 a reasonable choice for Section 8 investment, as landlords can expect a steady stream of tenants.
No: If the percentage of renters is low and there is a high DOM, indicating difficulty in finding tenants quickly, the landlord should reconsider investing in this area. A low demand for rentals could result in extended vacancy periods and reduced profitability.
It Depends: With limited DOM data, landlords should investigate further into the local rental market conditions. High competition among landlords or a transient population could affect the ease of finding and retaining tenants.
The decision to invest in ZIP 47384 for Section 8 properties hinges on these three key points. Landlords must evaluate their financial goals and tolerance for risk before making an investment decision.
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.