Section 8 Fair Market Rent (FMR) for ZIP 47550 - 2027

Location: Spencer County, IN | Metro: Spencer County, IN

Investment Score for ZIP 47550

N/A

Monthly Rent (2BR)

$1,010

Median Price (2BR)

$N/A

1% Rule

Annual Yield

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	$710
1 Bedroom	$780
2 Bedrooms	$1,010
3 Bedrooms	$1,360
4 Bedrooms	$1,370
5 Bedrooms	$1,589
6 Bedrooms	$1,780
7 Bedrooms	$1,922
8 Bedrooms	$2,018

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
3BR	$1,360	$302,346	0.45%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

791

Median Household Income

$80,625

Housing Units

284

Renter Percentage

3.9%

Occupancy Rate

100.0%

Renter Occupied

ZIP 47550, located in Spencer County, IN, serves as a valuable diversifier within a Section 8 portfolio strategy. With a median income of $80,625, the area offers a stable economic foundation that supports consistent tenant demand. Despite the lack of specific market data for appreciation plays and price cuts, the median home value stands at $303,107, indicating a substantial investment opportunity.

The 3.9% renter share suggests that while homeownership is predominant, there is still a notable segment of the population relying on rental properties. This makes ZIP 47550 suitable for landlords and small-portfolio investors looking to balance their investments with a mix of owner-occupied and rental units. Given the Federal Market Rent (FMR) of $960 for FY 2026, the area provides a competitive rental rate that aligns well with the local economic conditions.

To further illustrate the diversification potential, consider the following:

Economic Stability: The median income of $80,625 ensures that tenants are likely to have steady employment and the ability to meet their rental obligations.
Tenant Demand: The 3.9% renter share indicates a modest but reliable demand for rental properties, which can provide a steady stream of cash flow.
Housing Values: The median home value of $303,107 positions ZIP 47550 as a middle-tier market, offering both affordability and long-term growth potential.

In conclusion, ZIP 47550 is best suited as a diversifier within a Section 8 portfolio due to its balanced mix of economic stability, modest renter share, and competitive housing values. This approach allows investors to mitigate risks while capitalizing on the area's strengths.

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.