Location: Owen County, IN | Metro: Owen County, 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 | $810 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,250 | $223,319 | 0.56% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 47431 might have several concerns regarding the feasibility of investing in rental properties here. Let's address these concerns directly using the available data.
Objection 1: Will Fair Market Rent (FMR) of $860 for ZIP 47431 cover the mortgage on a home priced at $236,345?
The FMR of $860 is a critical figure for understanding potential rental income. However, to determine if it will cover the mortgage, we need to consider the interest rate and loan terms. Assuming a typical 30-year fixed-rate mortgage with an average interest rate of around 5%, the monthly mortgage payment for a $236,345 home would be approximately $1,280. This means that the FMR of $860 falls short by about $420 per month. Therefore, it's unlikely that the FMR alone will cover the mortgage without additional income sources or equity.
Objection 2: Is there enough renter demand at 11.1%?
The 11.1% rental occupancy rate suggests that there is some demand for rental properties in ZIP 47431. However, this percentage is relatively low compared to national averages, which typically hover around 35%. A lower rental demand could indicate that there is limited competition among renters, but it also implies that landlords might struggle to fill vacancies quickly. It's important to note that the occupancy rate does not provide information on the number of renters who are willing to pay higher rates, so while there is demand, it may not be as robust as in other areas with higher occupancy rates.
Objection 3: Will vouchers keep pace with market rents of $742?
Vouchers can play a significant role in covering rental costs, especially for low-income tenants. However, the data does not specify whether the voucher amounts in ZIP 47431 will increase to match the market rent of $742. Historically, voucher amounts have been adjusted annually based on local housing conditions and federal guidelines. If the voucher amount is less than the market rent, landlords would need to consider the gap between the two figures when setting their rental prices. In ZIP 47431, the FMR is slightly higher than the market rent, indicating that vouchers might be sufficient to cover most of the rental cost, but it's crucial to monitor any changes in voucher policies and amounts.
In conclusion, while ZIP 47431 presents opportunities for investment, particularly with the support of government-assisted housing through vouchers, the data indicates that the FMR is insufficient to cover mortgage payments on its own. Additionally, the rental demand is lower than the national average, suggesting potential challenges in maintaining high occupancy levels. Investors should carefully evaluate these factors before committing to investments in this area.
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.