Section 8 Fair Market Rent (FMR) for ZIP 47404 - 2027

Location: Owen County, IN | Metro: Bloomington, IN HUD Metro FMR Area

Investment Score for ZIP 47404

F
Monthly Rent (2BR)
$1,270
Median Price (2BR)
$236,679
1% Rule
0.54%
Annual Yield
6.44%

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

Unit Size Monthly FMR
Studio$1,020
1 Bedroom$1,110
2 Bedrooms$1,270
3 Bedrooms$1,620
4 Bedrooms$1,960
5 Bedrooms$2,274
6 Bedrooms$2,547
7 Bedrooms$2,751
8 Bedrooms$2,889

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
1BR $1,110 $192,119 0.58% F
2BR $1,270 $236,679 0.54% F
3BR $1,620 $309,648 0.52% F
4BR $1,960 $392,911 0.5% F
5BR $2,274 $484,257 0.47% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
22,744
Median Household Income
$61,389
Housing Units
11,719
Renter Percentage
42.2%
Occupancy Rate
87.3%
Renter Occupied
4,321

Bloomington, IN, specifically ZIP code 47404, is a vibrant area known for its mix of residential and academic environments, largely influenced by Indiana University. This analysis provides insights into the rental market dynamics, focusing on key metrics that are crucial for landlords and small-portfolio investors.

Investors can leverage these figures to understand the rental market's potential in ZIP 47404. With the FMR significantly lower than the market rent, there is room for pricing flexibility while still offering affordable options. The substantial renter share and median income levels support the viability of rental investments, aligning with the demand for housing. These factors collectively suggest a stable and potentially profitable market for those willing to invest in rental properties.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.