Section 8 Fair Market Rent (FMR) for ZIP 47588 - 2027

Location: Spencer County, IN | Metro: Perry County, IN

Investment Score for ZIP 47588

N/A

Monthly Rent (2BR)

$1,240

Median Price (2BR)

$N/A

1% Rule

Annual Yield

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

Unit Size	Monthly FMR
Studio	$910
1 Bedroom	$950
2 Bedrooms	$1,240
3 Bedrooms	$1,570
4 Bedrooms	$1,970
5 Bedrooms	$2,285
6 Bedrooms	$2,559
7 Bedrooms	$2,764
8 Bedrooms	$2,902

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$1,570	$195,267	0.8%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

921

Median Household Income

$57,315

Housing Units

387

Renter Percentage

16.6%

Occupancy Rate

84.2%

Renter Occupied

ZIP code 47588, located in the heart of Indiana, offers a stable and predictable rental market for landlords and small-portfolio investors. The area is characterized by modest housing values and a significant portion of renters, making it an attractive location for those looking to invest in real estate.

The Fair Market Rent (FMR) for ZIP 47588 in the fiscal year 2026 is set at $1,190. This figure represents the benchmark for rental prices in the area and can be used to gauge potential returns on investment.
According to Census ACS data, the average market rent in ZIP 47588 is currently $939. This suggests that there may be opportunities for landlords to increase rents slightly without pricing out tenants.
The median home value in ZIP 47588 stands at $178,221. This relatively low figure indicates that the cost of entry into the real estate market here is manageable for investors with limited capital.
Renters make up 16.6% of the population in ZIP 47588, which is a moderate share. This percentage reflects a steady demand for rental properties, though it also implies that a majority of residents own their homes.
The median income in the area is $57,315, providing insight into the financial capabilities of potential tenants and homeowners. This income level supports a reasonable rent-to-income ratio, ensuring that tenants can afford the current and expected rental rates.

In summary, ZIP 47588 presents a balanced rental market with modest property values and a steady demand for housing. The gap between the current market rent and the projected FMR suggests potential for rental price increases, while the median income level supports affordability for tenants. However, the moderate share of renters indicates that competition for rental properties might exist, and landlords should be prepared to offer competitive amenities and conditions to attract and retain tenants. Overall, the area is suitable for investors seeking stability and growth, albeit at a measured pace.

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.