Location: Spencer 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 | $790 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,070 | $212,331 | 0.5% | F |
| 3BR | $1,420 | $294,087 | 0.48% | F |
| 4BR | $1,720 | $325,185 | 0.53% | F |
U.S. Census Bureau data (2024)
Ferdinand, IN, with its ZIP code 47532, is a small, tight-knit community with a total population of 4,447. Only 15.4% of residents are renters, indicating a predominantly owner-occupied market. The area enjoys a relatively high median household income of $84,750, which suggests that it is economically stable and has a good standard of living. The median home value stands at $279,485, reflecting the quality and desirability of the housing stock in the region.
The economic landscape of ZIP 47532 shifts when we consider rental properties and their role in the local economy. According to the Fair Market Rent (FMR) set by the Department of Housing and Urban Development (HUD) for the fiscal year 2026, the metro area's FMR is $1,030. However, the actual market rent, as reported by the Census Bureau's American Community Survey (ACS), is significantly lower at $819 per month. This disparity between the HUD-set FMR and the market rate presents an opportunity for landlords and investors involved in the Section 8 program. It means that landlords can potentially receive higher rents through the voucher program compared to the prevailing market rates, which could lead to better cash flows and returns on investment.
Given these factors, ZIP 47532 appears to be well-suited for both hands-off voucher operators and hands-on value-add buyers. For those who prefer a passive approach, the higher FMR relative to market rents ensures a steady stream of income without the need for significant property management efforts. On the other hand, active investors looking to enhance property values might find opportunities in upgrading properties to meet the standards required by the Section 8 program, thereby benefiting from the increased rent subsidy. The relatively low percentage of renters and the high median income indicate that the area is less likely to experience high vacancy rates or difficulty in finding tenants, making it a secure investment for those interested in the Section 8 program.
In conclusion, Ferdinand, IN, offers a balanced environment where both passive and active Section 8 investors can thrive. With a favorable gap between FMR and market rents, coupled with a stable local economy, the ZIP 47532 presents itself as a promising location for real estate investments under the Section 8 program.
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.