Section 8 Fair Market Rent (FMR) for ZIP 47577 - 2027

Investment Score for ZIP 47577

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A skeptical investor might raise several concerns regarding ZIP 47577 (Bristow, IN). Let's address these objections with the available data.

• Will FMR $1,100 (metro FY 2026) cover the mortgage on a $215,719 home?: The current 30-year fixed mortgage rate stands at 6.30%, which means the monthly mortgage payment for a $215,719 home would be approximately $1,300, assuming a 20% down payment. Given the Fair Market Rent (FMR) of $1,100, this amount alone would not cover the mortgage. However, the ZIP's investability rating is 3.0/5, indicating moderate potential for buy-and-hold investors. Additionally, the 5-year Internal Rate of Return (IRR) is estimated at 9.2%, suggesting that appreciation and tax benefits could offset the initial shortfall.
• Is there enough renter demand at 30.3%?: According to the data, only 22.8% of households in ZIP 47577 are renters, which is lower than the 30.3% threshold often considered ideal for rental demand. This indicates a relatively low demand for rental properties. However, the vacancy rate is 19.7%, which is higher than national norms, suggesting that there may be room for improvement in property management and tenant screening to increase occupancy rates.
• Will vouchers keep pace with $623 market rents?: The average monthly rent in ZIP 47577 is $990, while the voucher amount is $623. This gap suggests that vouchers may not fully cover the market rent. However, the ZIP's 1% rule fails, meaning that the monthly rent does not meet 1% of the home's value ($2,157). Despite this, the market offers a gross yield of 5.7%, which could still be attractive for investors willing to manage the properties effectively.

The data shows that ZIP 47577 presents a mixed scenario for real estate investment. While the FMR does not fully cover the mortgage payments, the long-term appreciation and tax benefits could make it a viable option. The lower-than-expected rental demand and higher vacancy rates suggest that careful management and possibly strategic renovations will be necessary to maximize returns. Vouchers falling short of market rents highlight the need for thorough tenant screening and potentially targeting non-voucher renters. Overall, ZIP 47577 requires a hands-on approach and patience from investors.

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.