Location: Lawrence County, IN | Metro: Lawrence County, IN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
The Section 8 cap rate analysis for ZIP code 47467 provides insight into potential investment opportunities for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a two-bedroom apartment in the metropolitan area for fiscal year 2026 is set at $960 annually. This figure represents the government's benchmark for rental subsidies.
Given that the market rent for ZIP 47467 is currently not available, we must rely on the FMR as our primary reference point. The median home value for this ZIP code is also not available, which complicates direct comparisons between home values and rental income. However, we can still calculate an implied gross yield based on the FMR.
To derive the implied gross yield using the FMR, we would typically divide the annual rental income by the property's value. Since the median home value is not provided, we cannot perform this calculation directly. However, assuming a hypothetical property value, the gross yield would be lower than what might be expected in markets with higher median home values and known market rents.
The lack of specific market rent data means that any gross yield calculated using the FMR alone would be an underestimation of the true earning potential. In reality, market rents often exceed FMRs, especially in areas where there is significant demand for affordable housing. Without precise market rent figures, it's difficult to provide a concrete comparison.
The renter density and days on market (DOM) are also not specified, making it challenging to gauge the likelihood of finding tenants and the speed at which properties can be leased. Typically, higher renter density and shorter DOM periods indicate a more favorable environment for rental investments.
In conclusion, while the $960 FMR for a two-bedroom unit offers a baseline for calculating an implied gross yield, the absence of critical data points such as market rent and median home value limits the accuracy of this analysis. Investors should seek additional local market insights before making decisions based on the FMR alone.
Data Sources: FMR data from HUD (2027).
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.