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 | $870 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,090 | $208,937 | 0.52% | F |
| 3BR | $1,420 | $265,701 | 0.53% | F |
| 4BR | $1,720 | $363,624 | 0.47% | F |
U.S. Census Bureau data (2024)
With a Fair Market Rent (FMR) of $1020 for ZIP 47429 in Ellettsville, IN, landlords can expect to receive a significant subsidy from the Section 8 program. The current market rent stands at $797 according to the Census American Community Survey, indicating a substantial gap between what the government will pay and the actual market rate. This discrepancy offers a clear opportunity for landlords to maximize their rental income while still providing affordable housing options.
The median home value in the area is $279,000, which suggests a moderate cost for property acquisition. Given that only 12.7% of residents are renters, there is a relatively low competition among landlords, allowing for better control over rental pricing and terms. The median income of $92,378 supports a robust local economy, reducing the risk of tenant default on rent payments.
Notably, the data does not provide a specific number for days on market (DOM), but the low price-cut share of 0.2% indicates that properties in Ellettsville are generally well-priced and attract tenants quickly. This stability is crucial for maintaining a steady cash flow and minimizing vacancy rates.
In conclusion, the combination of a high Section 8 subsidy ($1020 FMR) compared to the market rent ($797), along with a moderate median home value ($279,000) and a strong local economy ($92,378 median income), makes ZIP 47429 an attractive investment opportunity for landlords and small-portfolio investors. The low competition among renters (12.7%) and the quick absorption of properties (0.2% price-cut share) further support this assessment. Therefore, landlords should consider participating in the Section 8 program in Ellettsville, IN, as it provides a reliable and profitable means of generating rental income.
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.