Location: Spencer County, IN | Metro: Evansville, IN MSA
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 | $810 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,410 |
| 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 |
|---|---|---|---|---|
| 3BR | $1,410 | $237,880 | 0.59% | F |
U.S. Census Bureau data (2024)
Skeptical investors considering ZIP 47541 might have several concerns regarding the feasibility of renting properties through the Section 8 program. Here, we address these concerns directly with the available data.
The first objection is whether the Fair Market Rent (FMR) of $1,190 for ZIP 47541 in fiscal year 2024 will be sufficient to cover the mortgage on a home priced at $223,452. This concern is valid, but it's important to note that the FMR is set to ensure affordability for low-income families while also covering reasonable housing costs. A home valued at $223,452 with a typical down payment and an average interest rate could result in a monthly mortgage payment that exceeds the FMR. However, landlords should consider additional income sources such as utility reimbursements and the fact that FMRs can increase over time, potentially aligning better with mortgage payments in the future.
A second point of contention is the perceived lack of renter demand at only 15.0%. This percentage indicates the share of households participating in the Section 8 program, which might seem low compared to other areas. Despite this, it's crucial to recognize that even a smaller percentage can translate into a significant number of potential tenants. Moreover, the demand for affordable housing often remains steady, and the program's participants are typically reliable and vetted by the government. This stability can be particularly attractive to landlords and small-portfolio investors looking for consistent rental income.
The final objection revolves around the adequacy of voucher payments to keep up with market rents of $804. While the FMR of $1,190 is higher than the current market rent, it's essential to understand that voucher amounts can vary based on the specific needs of the household and the location within the ZIP code. The gap between the FMR and the market rent suggests that landlords in ZIP 47541 could potentially receive payments close to the market rate, making participation in the Section 8 program financially viable. However, the data does not provide a detailed breakdown of how voucher amounts are distributed, so some variability in individual tenant cases is expected.
In conclusion, while there are legitimate concerns about the financial viability of renting properties in ZIP 47541 through the Section 8 program, the data supports a cautiously optimistic outlook. Landlords should carefully evaluate their own financial situation and consider consulting with local real estate professionals to make informed decisions.
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.