Location: Perry County, IN | Metro: Perry 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 | $760 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $780 | $100,026 | 0.78% | D |
| 2BR | $1,010 | $131,124 | 0.77% | D |
| 3BR | $1,260 | $196,996 | 0.64% | D |
| 4BR | $1,700 | $250,105 | 0.68% | D |
U.S. Census Bureau data (2024)
The classification of ZIP code 47586, located in Tell City, Indiana, hinges on the balance between yield and stability. With a Fair Market Rent (FMR) of $960 for the metro area in fiscal year 2026, compared to a local market rent of $663, there is an opportunity for higher rental yields. However, the median home value of $181,983 suggests that the capital investment required for property acquisition is moderate.
On the stability axis, the data indicates a relatively stable rental market. The percentage of renters stands at 27.1%, which is a modest but healthy proportion. While the days on market (DOM) is listed as N/A, the median household income of $60,587 provides a strong indicator of the financial health of the residents, supporting the potential for consistent cash flow.
To determine whether this is a high-yield/low-stability flip-style market or a steady-cashflow zone, we need to consider the relationship between the FMR and the local market rent. A gap of over $297 between the FMR and the actual market rent suggests that there is room for increasing rents, potentially leading to higher yields. However, this must be balanced against the risk of vacancy, especially if the increased rents are not justified by the local economic conditions or housing demand.
The median household income figure supports the idea that this is not a low-stability market. Residents have a reasonable level of disposable income, which reduces the risk of non-payment and increases the likelihood of maintaining occupancy rates. This points towards a market that is more stable than volatile.
In conclusion, ZIP code 47586 presents characteristics of a market that leans towards a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The moderate home values combined with the relatively high median household income indicate a solid foundation for long-term investment. Landlords and small-portfolio investors should expect a reliable return on their investments, albeit with the potential to increase yields by adjusting rents closer to the FMR without significantly jeopardizing occupancy.
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.