Section 8 Fair Market Rent (FMR) for ZIP 47596 - 2027
Location: Knox County, IN | Metro: Knox County, IN
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $810 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$93,958
To determine if a landlord should buy in ZIP code 47596 for Section 8 purposes, follow these steps:
- Step 1: Debt Service Coverage Ratio (DSCR)
- If the Fair Market Rent (FMR) of $1,010 for the metro area in fiscal year 2026 can cover the debt service on a property, proceed to Step 2. Otherwise, do not invest here as the rental income will not be sufficient to meet financial obligations.
- Step 2: Market Rent Comparison
- If the market rent is above the FMR, it suggests strong demand and higher potential returns beyond just Section 8 tenants. This makes the investment more attractive.
- If the market rent is equal to the FMR, it means that the property can be rented out at the same rate as Section 8 allows, which is acceptable but does not offer additional market benefits.
- If the market rent is below the FMR, it indicates that the property might struggle to attract non-assisted tenants, making it less appealing for those looking to diversify their tenant base.
- Step 3: Tenant Demand
- With 25.4% of residents being renters, there is a decent pool of potential tenants. However, the demand must also be assessed based on the days on market (DOM).
- If the DOM is low, indicating quick turnover and high demand, this supports the viability of renting properties in this area.
- If the DOM is high, suggesting slower turnover and lower demand, it could mean that even though a quarter of the population rents, finding tenants might still be challenging.
The decision to invest in ZIP 47596 for Section 8 purposes hinges on whether the FMR clears debt service, the relationship between market rent and FMR, and the balance of tenant demand versus the time it takes to rent out properties. If all conditions align favorably, the answer is yes; otherwise, it depends on how these factors influence your specific investment goals and risk tolerance.
Data Sources: FMR data from HUD (2027). 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.