Section 8 Fair Market Rent (FMR) for ZIP 47454 - 2027

Investment Score for ZIP 47454

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Investors looking at ZIP 47454 in Paoli, Indiana, often have several key concerns regarding the feasibility of investing in rental properties. Here, we address these objections head-on using available data.

• Will FMR $990 (metro FY 2026) cover the mortgage on a $170,122 home? The Fair Market Rent (FMR) of $990 per month can indeed cover the mortgage on a $170,122 home. Assuming a 30-year fixed-rate mortgage at an average rate of 4.5%, the monthly payment would be approximately $840. This leaves a buffer of $150 per month before accounting for property taxes, insurance, and maintenance costs. While it's important to consider these additional expenses, the initial analysis shows that the FMR is sufficient to cover the primary cost of ownership.

• Is there enough renter demand at 21.5%? With a rental rate of 21.5%, there is moderate demand for rental units in ZIP 47454. However, the percentage alone does not fully capture the dynamics of the local housing market. To provide a clearer picture, it would be beneficial to know the total number of households and how many are likely to require rental assistance. Additionally, the stability and growth of local employment sectors can influence long-term demand. Without these specifics, the 21.5% rental rate suggests a competitive but manageable market for landlords.

• Will vouchers keep pace with $862 market rents? The Housing Choice Voucher program aims to ensure that voucher holders pay no more than 30% of their adjusted income towards rent. If the average voucher amount is below $862, landlords might face challenges in fully covering their costs through the voucher program alone. To accurately assess this, one would need the most recent voucher amounts in ZIP 47454. Current data indicates that market rents are at $862, but whether voucher amounts will match or exceed this figure remains unclear without the latest figures from the Department of Housing and Urban Development (HUD).

In conclusion, while ZIP 47454 presents some challenges, particularly in ensuring that vouchers cover the full market rent, the FMR appears adequate to support mortgage payments. The rental demand, though not high, is still present, indicating a viable market for small-portfolio investors. However, for a comprehensive assessment, further investigation into the local employment trends and the specifics of HUD voucher amounts is recommended.

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.