Section 8 Fair Market Rent (FMR) for ZIP 47512 - 2027

Location: Knox County, IN | Metro: Knox County, IN

Investment Score for ZIP 47512

Monthly Rent (2BR)

$1,010

Median Price (2BR)

$85,987

1% Rule

1.17%

Annual Yield

14.1%

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

Unit Size	Monthly FMR
Studio	$770
1 Bedroom	$780
2 Bedrooms	$1,010
3 Bedrooms	$1,340
4 Bedrooms	$1,340
5 Bedrooms	$1,554
6 Bedrooms	$1,740
7 Bedrooms	$1,879
8 Bedrooms	$1,973

Investment Analysis by Bedroom Size

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

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,010	$85,987	1.17%	B
3BR	$1,340	$123,876	1.08%	B
4BR	$1,340	$175,304	0.76%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

4,243

Median Household Income

$57,857

Housing Units

2,070

Renter Percentage

31.3%

Occupancy Rate

88.1%

Renter Occupied

570

ZIP 47512, located in Bicknell, IN, Knox County, serves as a cash-flow anchor within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for the Knox County metro area in fiscal year 2026 is set at $960, while the current market rent in ZIP 47512 stands at $844. This creates a spread of $116, indicating that landlords can expect to earn slightly above market rates when participating in the Section 8 program. Additionally, the median home value in this ZIP code is $97,988, which is relatively low, making it easier for landlords to acquire properties at a reasonable cost.

The appreciation potential in ZIP 47512 is limited, as evidenced by the lack of significant price increases or decreases. According to recent data, there is no substantial price-cut share or day DOM trend to suggest a rapid increase in property values. Therefore, it cannot be classified as an appreciation play.

ZIP 47512 also offers opportunities for diversification, with a 31.3% renter share and a median income of $57,857. However, the primary role of this ZIP code within a Section 8 portfolio strategy is as a cash-flow anchor. The higher FMR compared to the market rent ensures steady, reliable income, even if the appreciation potential is modest. This stability is crucial for landlords and small-portfolio investors who seek consistent returns on their investments.

To further support this strategy, consider the following points:

Stable Income: Landlords can rely on the Section 8 program to provide predictable rental income, which is essential for managing cash flow.
Affordable Property Acquisition: With a median home value of $97,988, it's possible to purchase properties at a lower cost, maximizing the potential for positive cash flow.
Rental Demand: The 31.3% renter share indicates a sufficient demand for rental properties, ensuring that vacancies are less likely.

In conclusion, ZIP 47512 is best suited as a cash-flow anchor in a Section 8 portfolio strategy due to the favorable spread between FMR and market rent, affordable property acquisition costs, and stable rental demand.

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.