Location: Knox County, IN | Metro: Sullivan County, IN HUD Metro FMR Area
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 | $770 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $130,751 | 0.77% | D |
| 3BR | $1,340 | $171,841 | 0.78% | D |
| 4BR | $1,550 | $249,813 | 0.62% | D |
U.S. Census Bureau data (2024)
With a Fair Market Rent (FMR) of $860 for ZIP 47561 in Oaktown, IN, landlords can expect to align their rental prices with the federal guidelines for fiscal year 2024. The Census American Community Survey reports a market rent of $688, indicating that there is a $172 discrepancy between what the government deems fair and the actual rental rates, which could be leveraged by savvy investors. The median home value stands at $170,639, suggesting that the area is moderately priced, suitable for middle-income families. Renter share in Oaktown is 29.9%, reflecting a significant portion of the population that relies on rental housing, which is crucial for landlords looking to ensure steady demand. The median income of $45,911 provides insight into the economic conditions of the area, helping investors understand the financial capacity of potential tenants.
The lack of data on days on market (DOM) and the percentage of homes with price cuts implies a stable market without excessive turnover or pricing adjustments, which is favorable for long-term investment strategies. Given these figures, it's evident that Oaktown offers a balanced opportunity for landlords and small-portfolio investors. The difference between the FMR and the market rent suggests a margin where landlords can increase their rents while still remaining competitive and attractive to tenants.
Moreover, the median home value indicates that the real estate market is not overheated, allowing for reasonable returns on investment without the risks associated with highly inflated property values. The significant renter share ensures a consistent pool of tenants, reducing the likelihood of vacancies and providing a reliable cash flow. Although the median income is relatively low, the gap between the FMR and market rent, combined with the moderate home values, makes Oaktown an accessible market for both landlords and tenants.
In conclusion, for those interested in Section 8 properties, Oaktown presents a viable option with a clear $172 differential between the FMR and market rent, a substantial 29.9% renter share, and a stable real estate market. The Section 8 program can thus serve as a valuable tool for securing steady tenancy and predictable revenue streams, making Oaktown a worthwhile consideration for investors.
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.