Location: Orange County, IN | Metro: Dubois County, IN
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 | $760 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,020 | $162,366 | 0.63% | D |
| 3BR | $1,380 | $221,539 | 0.62% | D |
| 4BR | $1,650 | $278,749 | 0.59% | F |
U.S. Census Bureau data (2024)
The Section 8 housing analysis for ZIP code 47432, located in French Lick, Indiana, reveals a significant opportunity for landlords and small-portfolio investors. The Fair Market Rent (FMR) for the metro area for fiscal year 2026 is set at $990, while the Census ACS reports the current market rent at $845. This creates a gap of $145, or approximately 16.6%, in favor of the FMR.
This gap means that properties participating in the Section 8 program can be rented out at a rate higher than the open-market average. For instance, a landlord could receive $990 per month for a property that would otherwise rent for $845 in the open market. Given the local context of French Lick, where only 17.1% of residents are renters and the median home value stands at $192,394, the potential yield from Section 8 tenants becomes even more attractive. With a median income of $65,723, many residents may find it challenging to afford homeownership, making rental properties an essential part of the housing market.
The higher FMR compared to the market rent indicates that voucher tenants can help achieve better yields. This is particularly important because it allows landlords to cover their costs, including maintenance and property taxes, which can be substantial in a region with a high median home value. Additionally, the stability of Section 8 tenants, who have their rent subsidized, can offer a reliable income stream for investors, despite the relatively low rental demand in the area.
In conclusion, the gap between the FMR and market rent in ZIP 47432 makes Section 8 participation a strategic choice for landlords and investors looking to maximize returns. The numbers clearly show that voucher tenants can fill a niche in the rental market, providing both financial security and a competitive advantage over open-market rates.
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.