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 |
|---|---|---|---|---|
| 2BR | $1,010 | $160,622 | 0.63% | D |
| 3BR | $1,210 | $223,814 | 0.54% | F |
| 4BR | $1,340 | $239,547 | 0.56% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 47385, located in Spiceland, Indiana within the Henry County metro area, reveals several key points that are crucial for landlords and small-portfolio investors.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for the Henry County metro area for fiscal year 2026 is set at $960. However, the current market rent, based on Census ACS data, stands at $739. This discrepancy indicates that landlords aiming to charge the FMR might face challenges in finding tenants willing to pay that amount, given the current market conditions.
Regarding the affordability of acquisitions, the median home value in ZIP 47385 is $202,154. With limited data available on the days on market (DOM) and the percentage of homes needing price cuts, it's difficult to provide a precise assessment of how quickly properties can be sold or if they require price adjustments. However, the median home value suggests that property acquisition is relatively affordable compared to many other areas in the United States.
The third point concerns tenant demand. With a total population of 1,714, the renter share is 27.4%. This means that approximately 470 residents are potential renters. While the number of potential tenants is not exceptionally high, it does represent a significant portion of the local population, indicating a steady demand for rental housing.
In conclusion, while the rent math in ZIP 47385 may not align perfectly with the Fair Market Rent due to the lower actual market rent, the acquisition cost remains reasonable at $202,154. The tenant demand, though modest, is consistent with the 27.4% renter share of the population. For landlords and small-portfolio investors, this suggests that while pricing must be competitive, there is a viable market for rental properties in Spiceland, IN. However, careful consideration should be given to setting rents closer to the market rate of $739 to ensure occupancy and cash flow stability.
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.