Location: Bloomington, IN | Metro: Bloomington, IN HUD Metro FMR Area
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 | $1,010 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,940 |
| 5 Bedrooms | $2,250 |
| 6 Bedrooms | $2,520 |
| 7 Bedrooms | $2,722 |
| 8 Bedrooms | $2,858 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,100 | $238,215 | 0.46% | F |
| 2BR | $1,260 | $249,377 | 0.51% | F |
| 3BR | $1,610 | $322,736 | 0.5% | F |
| 4BR | $1,940 | $427,037 | 0.45% | F |
| 5BR | $2,250 | $523,193 | 0.43% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 47408 in Bloomington, Indiana, hinges on its financial metrics: the Fair Market Rent (FMR), the median home value, and the percentage of renters. The FMR for ZIP 47408 in fiscal year 2024 is set at $1,090. This figure represents the maximum amount that a low-income household should pay for rent. In contrast, the market rent stands at $1,509, indicating a potential rental premium above the FMR. The median home value in the area is $343,042, which is relatively high.
Evaluating stability, we see that 64.2% of residents are renters, suggesting a robust demand for rental properties. However, the lack of data on days on market (DOM) makes it difficult to assess the speed at which rental units turn over, which is a key indicator of market stability. Additionally, the average income in the area is $45,644, providing insight into the economic base supporting rental payments.
Given these figures, ZIP 47408 leans towards being a steady-cashflow zone rather than a high-yield/low-stability market. The significant gap between the FMR and market rent suggests opportunities for landlords to charge above the FMR, but the high median home value and substantial percentage of renters indicate a stable demand. While the income figure is lower compared to some other areas, it still supports a steady rental market. The absence of DOM data prevents a definitive assessment of turnover rates, but the high percentage of renters implies a consistent flow of tenants.
In summary, ZIP 47408 offers a blend of decent yield potential and moderate stability. Landlords can expect to generate reliable cash flows, with the possibility of achieving higher yields by setting rents closer to market rates. The data points towards a market where long-term investments could thrive, given the strong rental demand and reasonable income levels.
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.