Location: Perry County, IN | Metro: Perry 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 | $790 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,050 | $125,732 | 0.84% | C |
| 3BR | $1,300 | $183,589 | 0.71% | D |
| 4BR | $1,760 | $234,742 | 0.75% | D |
U.S. Census Bureau data (2024)
The real estate market in ZIP 47520, Cannelton, IN, presents a unique set of conditions that are indicative of both opportunities and challenges for landlords and small-portfolio investors. The median home value stands at $157,288, which suggests a relatively affordable market compared to many other areas in the United States. However, the lack of available data on the percentage of listings being reduced and the median days on market (DOM) indicates a stable market where there is little urgency among sellers to reduce their asking prices.
This stability in pricing power is further supported by the rental market dynamics. The Fair Market Rent (FMR) for the area is projected to be $1,030 for fiscal year 2026, while the current market rate, according to Census ACS data, is $736. This significant gap between the projected FMR and the current market rate signals a potential upward trend in rental prices. Landlords can leverage this trend by gradually increasing rents to align more closely with the FMR, thereby improving their cash flow without necessarily facing high tenant turnover.
For long-term investors, the setup implies a realistic appreciation thesis. With the median home value already low and the potential for rental rates to rise, there is a strong foundation for property values to appreciate over the next 12-24 months. As rental income becomes more competitive with the FMR, it will likely support higher property values due to increased demand from both tenants and buyers. Additionally, the stable market indicated by the lack of price reductions and a non-urgent DOM suggests that there is less risk of a sudden downturn in property values.
However, it's important to note that the appreciation thesis is not guaranteed. Investors should consider the broader economic context, including employment trends, population growth, and any changes in local government policies that could affect property values. Nonetheless, the current data points to a favorable environment for long-term investment, where steady appreciation and improved rental income can be expected.
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.