Section 8 Fair Market Rent (FMR) for ZIP 47390 - 2027

Investment Score for ZIP 47390

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

When considering whether to invest in ZIP 47390 (Union City, IN) for Section 8 properties, follow these steps:

Step 1: Can the Fair Market Rent (FMR) of $960 cover the debt service on a $136,563 property?

• Yes: The FMR of $960 is sufficient to cover the debt service on a property valued at $136,563. This means that if you can acquire a property at or below this price point, the rental income from a Section 8 tenant will meet your financial obligations.
• No: If the debt service exceeds $960 per month, then acquiring a property in Union City, IN, strictly for Section 8 tenants would not be financially viable. You must ensure that the monthly payment, including principal, interest, taxes, and insurance, does not exceed the FMR to maintain profitability.

Step 2: How does the market rent of $597 compare to the FMR?

• Above FMR: Not applicable in this case since the market rent is below the FMR.
• At FMR: Not applicable in this case since the market rent is below the FMR.
• Below FMR: The market rent of $597 is below the FMR of $960. This indicates that there is potential to charge higher rents to non-Section 8 tenants, which could make the investment more attractive. However, you must also consider the demand for Section 8 housing.

Step 3: Is there enough demand with 26.5% of residents being renters and the days on market (DOM) being N/A?

• Yes: With 26.5% of residents being renters, there is a reasonable demand for rental properties. However, the lack of data on DOM suggests that either the rental market is stable, or there is insufficient data to draw conclusions. Assuming stability, this percentage of renters supports the viability of an investment in Union City, IN.
• No: If the percentage of renters were significantly lower, it might indicate a weak rental market. However, given the available data, 26.5% is not a low figure and should support a steady demand for rental units.
• It Depends: The N/A for DOM means you need to gather additional local market insights. If the market is tight and properties are rented quickly, this would support a positive outlook. Conversely, if the market is slow, it could indicate over-saturation or other issues affecting demand.

In conclusion, if the debt service on a $136,563 property is less than $960, and the market conditions suggest strong demand for rentals despite the lack of DOM data, then investing in ZIP 47390 for Section 8 properties is advisable. The difference between the market rent and FMR also offers flexibility in pricing for non-Section 8 tenants, enhancing overall investment potential.

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.