Location: Pike County, IN | Metro: Evansville, IN MSA
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 | $780 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $171,374 | 0.59% | F |
| 3BR | $1,250 | $270,918 | 0.46% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $930 for ZIP 47619 in Indiana can sufficiently cover the mortgage on a property valued at $236,227. The FMR is the maximum amount HUD will pay for low-income housing. To determine if this FMR is adequate, one must consider the mortgage rates and terms. Assuming a 30-year fixed-rate mortgage at an average rate of 4.5%, the monthly payment on a $236,227 home would be approximately $1,150. This means that the FMR of $930 would not fully cover the mortgage payment.
The investor may also doubt if there's sufficient renter demand given that only 15.0% of the population are renters. However, this percentage translates into actual numbers. If the total population is around 2,000 people, then there are roughly 300 potential renters. This figure suggests that while the rental market is not large, it still presents opportunities for those who can cater to the needs of this segment effectively. Additionally, the percentage does not account for the possibility of multiple roommates sharing a single unit, which could increase the number of available units sought after by renters.
Another concern is whether Housing Choice Vouchers will keep up with the market rents, currently at $830. According to the latest data, the voucher payment standards in ZIP 47619 are below the market rents. This indicates that landlords might need to supplement the difference between the voucher payment and the market rent, which can vary depending on the size of the unit and other factors. However, the voucher program provides stability and ensures a steady stream of tenants, which can be beneficial in areas with lower renter populations.
While the data shows that the FMR and voucher payments do not fully meet the mortgage costs and market rents, they still offer significant benefits. The voucher program guarantees a reliable source of income and reduces vacancy rates, which is crucial in a smaller rental market. Moreover, the FMR serves as a baseline that can be adjusted based on market conditions and the landlord's financial strategy.
To conclude, investing in ZIP 47619 requires careful consideration of the rental market dynamics and the role of government assistance programs. Despite the challenges, the combination of stable tenant occupancy and the potential for higher rents above the FMR can make it a viable option for those willing to navigate these complexities.
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.