Location: Knox County, IN | Metro: Knox 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 | $930 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,600 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,220 | $154,710 | 0.79% | D |
| 3BR | $1,600 | $204,235 | 0.78% | D |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 investment in ZIP code 47557 in Monroe City, IN, must be carefully considered. Tenant turnover could be a significant issue due to the disparity between the market rent of $867 and the Fair Market Rent (FMR) of $1,210 for FY 2026 in the metro area. This difference suggests that tenants might struggle to afford the higher rent when their vouchers expire, leading to frequent changes in occupancy.
Vacancy exposure is another concern, as the days on market (DOM) is listed as N/A, indicating a lack of recent data on how long properties typically remain vacant before being rented. This uncertainty can lead to periods where the property generates no income, affecting cash flow and profitability.
Deferred maintenance is also a risk factor, especially considering the typical home value of $195,923 and the median income of $84,375. The median income figure suggests that many residents might have limited financial resources, which could translate into less money available for repairs and maintenance. This could result in higher costs for landlords who take over properties in need of upgrades or fixes.
However, these risks are somewhat mitigated by the high renter share of 22.6%. A larger proportion of renters often correlates with higher demand for housing assistance vouchers, such as Section 8. This demand can help ensure a steady stream of qualified tenants who are able to pay the required portion of the rent, reducing the likelihood of extended vacancies.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 47557 is moderate.
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.