Location: Spencer County, IN | Metro: Spencer 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 | $1,020 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,470 |
| 3 Bedrooms | $1,960 |
| 4 Bedrooms | $1,970 |
| 5 Bedrooms | $2,285 |
| 6 Bedrooms | $2,559 |
| 7 Bedrooms | $2,764 |
| 8 Bedrooms | $2,902 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,960 | $280,185 | 0.7% | D |
| 4BR | $1,970 | $369,901 | 0.53% | F |
U.S. Census Bureau data (2024)
The market in ZIP code 47579 presents a dynamic environment characterized by specific economic indicators that frame its current state. The Fair Market Rent (FMR) for the area, set at $1,410 for fiscal year 2026, is notably higher than the actual market rent observed, which stands at $1,115 according to the Census American Community Survey (ACS). This discrepancy suggests that while there is an established benchmark for rental prices, the current market may be experiencing downward pressure, possibly due to a variety of factors including supply and demand dynamics.
The median home value of $296,645 provides insight into the overall affordability and desirability of homeownership within the ZIP code. However, the lack of data on price-cut share and days on market (DOM) makes it challenging to definitively conclude whether supply is currently outpacing demand or vice versa. These missing metrics would typically help identify trends such as prolonged listing times indicating a surplus of homes or frequent price reductions suggesting a competitive market with many buyers.
A key figure to consider is the 9.1% renter share. While this percentage might seem low, it is indicative of a predominantly owner-occupied community. In such a setting, the relatively smaller proportion of renters could imply less immediate demand for rental properties. However, this also means that the majority of residents are homeowners, potentially leading to long-term housing pressures as these homeowners age or as younger generations seek affordable housing options. Over time, this could shift the balance towards greater rental demand if homeowners decide to downsize or move out of the area, creating opportunities for landlords and small-portfolio investors.
The gap between the FMR and market rent could signal a market where rental prices have yet to reach the federally recognized fair level. This scenario might present challenges for landlords aiming to maximize their income but also offers potential for those willing to invest in property improvements to justify higher rents closer to the FMR. It's important for investors to monitor these figures closely as they evolve, understanding that changes in the broader economy, local job markets, and demographic shifts can all influence the trajectory of this market.
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.