Location: Daviess County, IN | Metro: Daviess 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 | $780 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,370 |
| 5 Bedrooms | $1,589 |
| 6 Bedrooms | $1,780 |
| 7 Bedrooms | $1,922 |
| 8 Bedrooms | $2,018 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,040 | $304,561 | 0.34% | F |
| 3BR | $1,270 | $341,442 | 0.37% | F |
| 4BR | $1,370 | $409,313 | 0.33% | F |
U.S. Census Bureau data (2024)
The real estate market in ZIP 47558, located in Montgomery, Indiana, within Daviess County, presents a unique opportunity for Section 8 investors. The HUD Fair Market Rent (FMR) for the area is set at $1,030 for the fiscal year 2026. In comparison, the market rent as reported by the Census ACS is significantly lower at $813. This indicates that voucher tenants can cashflow at the HUD FMR level, making the investment attractive for those seeking stable rental income.
The median home value in ZIP 47558 stands at $367,689. Using this figure, we can calculate the rent-to-price ratio, which is approximately 0.22%. This suggests that the rental market is relatively strong compared to the overall property values, indicating a good balance between owning and renting properties.
Note that specific data on the median days on market (DOM) and the percentage of price cuts are not available. However, given the disparity between the HUD FMR and the actual market rent, it is evident that the rental market in this area is favorable for investors. The higher FMR allows landlords to charge more than the current market rate, thereby ensuring a positive cash flow even when accounting for property management and maintenance costs.
The strongest investor angle in ZIP 47558 is cashflow. With the HUD FMR well above the market rent, investors can expect a steady stream of income from Section 8 tenants without the need to rely on premium units or significant price increases. This makes the area particularly appealing for small-portfolio investors looking for reliable returns.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.