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 | $840 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,210 | $150,007 | 0.81% | C |
| 3BR | $1,610 | $189,719 | 0.85% | C |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 47615 in Grandview, Indiana, reveals some key insights into the potential investment opportunities available. The Fair Market Rent (FMR) for a 2-bedroom unit in the metropolitan area is set at $1,150 annually, while the market rent based on Census ACS data stands at $856 per month.
To determine the gross yield, we annualize these figures against the median home value of $184,024. For the FMR scenario, the annualized rent of $1,150 would result in an implied gross yield of approximately 0.62%. This is calculated by taking the annual rent ($1,150) and dividing it by the median home value ($184,024).
In contrast, using the market rent figure of $856 per month, the annualized rent would be $10,272, leading to a much higher implied gross yield of about 5.58%. This calculation involves multiplying the monthly rent ($856) by 12 months to get the annual rent ($10,272), then dividing that by the median home value ($184,024).
Given the 11.9% renter density in the area, it's important to note that the market rent scenario appears more realistic. The FMR of $1,150 is likely a maximum limit rather than a typical rental price, making the gross yield of 0.62% less plausible for most investors. On the other hand, the 5.58% gross yield based on market rent reflects a more accurate representation of what landlords might expect to earn from a property in this ZIP code.
The lack of specific Days on Market (DOM) data means that we cannot precisely gauge how quickly properties might turn over. However, the significant difference in gross yields between the FMR and market rent scenarios underscores the importance of understanding local rental dynamics before committing to a Section 8 investment in Grandview, IN.
Investors should use these figures as a starting point for their own calculations, considering factors such as operating expenses, vacancy rates, and maintenance costs to arrive at a net operating income (NOI) that reflects the true profitability of a property in this ZIP code under Section 8 guidelines.
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.