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 | $760 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,260 | $239,185 | 0.53% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 47551 reveals a market that is somewhat balanced between yield potential and stability, but leans slightly towards being a high-yield, low-stability environment. This classification is driven primarily by the Federal Market Rent (FMR) figure of $960 for the fiscal year 2026, which is significantly lower than the median home value of $220,142. This disparity suggests that rental yields could be attractive for landlords and small-portfolio investors looking to capitalize on the difference between housing costs and rental income.
The stability of the market is indicated by several factors. The renter population at 19.2% is relatively low, suggesting that homeownership is more prevalent, which can lead to less predictable demand for rental properties. Additionally, the median household income of $68,859 provides some insight into the financial capacity of residents to pay rent, though without specific days on market (DOM) data, it's challenging to gauge the speed at which rental properties turn over. A higher DOM typically correlates with lower stability in rental markets.
In conclusion, ZIP 47551 appears to offer a high-yield opportunity due to the low FMR relative to the median home value, but the stability is compromised by the lower renter percentage and the unknown turnover rate of rental properties. For investors seeking aggressive returns and willing to manage the risks associated with a potentially less stable tenant pool, this ZIP code could present an appealing opportunity. However, those prioritizing steady cash flow should consider these factors carefully before investing.
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.