Location: Bloomington, IN | Metro: Bloomington, IN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,010 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,950 |
| 5 Bedrooms | $2,262 |
| 6 Bedrooms | $2,533 |
| 7 Bedrooms | $2,736 |
| 8 Bedrooms | $2,873 |
U.S. Census Bureau data (2024)
In assessing the investment risk for Section 8 properties in ZIP code 47406, several factors must be considered that could negatively impact the performance of rental investments. Firstly, tenant turnover presents a significant challenge. With a market rent of $1,219, which is notably higher than the Fair Market Rent (FMR) of $1,090 for FY 2024, landlords might face difficulties in attracting tenants who qualify for Section 8 vouchers. The disparity between market rent and FMR can lead to increased vacancy rates and prolonged exposure to vacancy costs, especially when the days on market (DOM) data is unavailable, indicating potential unpredictability in how quickly units can be filled.
Moreover, the lack of specific data on typical home values and median incomes in ZIP 47406 introduces uncertainty regarding deferred maintenance costs. Landlords may find it challenging to estimate repair and maintenance budgets without a clear understanding of property values and the financial capacity of residents to contribute to such expenses. This ambiguity can result in unexpected financial burdens that could affect cash flow and profitability.
However, these risks are mitigated by the fact that ZIP 47406 has a 100.0% renter share. High renter density typically translates into a robust demand for housing, including those supported by Section 8 vouchers. Despite the higher market rent compared to FMR, the saturation of renters in the area suggests a stable pool of potential tenants who might be willing to pay the difference or seek out properties that offer amenities justifying the premium.
Given the analysis, the investment risk for a first-time Section 8 landlord in ZIP 47406 is moderate.
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.