Location: Pike County, IN | Metro: Dubois 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 | $1,370 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,040 | $156,622 | 0.66% | D |
| 3BR | $1,370 | $248,181 | 0.55% | F |
| 4BR | $1,560 | $278,095 | 0.56% | F |
U.S. Census Bureau data (2024)
The investment landscape for Section 8 properties in ZIP code 47564 in Otwell, IN, presents several challenges that landlords must be prepared to address. Firstly, tenant turnover is a significant concern. The market rent stands at $1,077, whereas the Fair Market Rent (FMR) for FY 2026 in the metropolitan area is $1,020. This discrepancy suggests that tenants receiving Section 8 vouchers might struggle to cover the full market rent, leading to higher turnover rates. Landlords should be ready to manage frequent changes in occupancy and the associated costs.
Vacancy exposure is another critical risk factor. The data indicates that the days on market (DOM) for rental listings is currently unavailable, which can make it difficult to predict how long a property might remain vacant. High vacancy periods can lead to significant financial losses, especially if the landlord is dependent on steady rental income.
Deferred maintenance is also a potential issue, given the typical home value of $219,733 and the median household income of $58,056. While the home values suggest a reasonable asset base, the lower median income implies that tenants might have limited resources to contribute towards maintenance and repairs. Landlords should budget accordingly to ensure that their properties remain in good condition despite potential financial constraints faced by tenants.
However, these risks are somewhat mitigated by the high renter share in the area, which stands at 30.5%. A large percentage of renters typically translates into greater demand for housing vouchers, which can provide a steady stream of reliable tenants. The presence of many renters can also indicate a robust local economy that supports a diverse range of job opportunities, further stabilizing the rental market.
In conclusion, the overall risk for a first-time Section 8 landlord in ZIP 47564 in Otwell, IN, is moderate. While there are notable risks related to tenant turnover, vacancy exposure, and deferred maintenance, the high renter density provides a counterbalance that supports a stable tenant pool.
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.