Location: Evansville, 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $780 | $74,995 | 1.04% | B |
| 2BR | $1,010 | $138,374 | 0.73% | D |
| 3BR | $1,250 | $232,022 | 0.54% | F |
| 4BR | $1,390 | $298,980 | 0.46% | F |
| 5BR | $1,612 | $348,870 | 0.46% | F |
U.S. Census Bureau data (2024)
A decision tree for whether to invest in ZIP 47620 (Mount Vernon, IN) for Section 8 properties is outlined below, based on specific criteria and data points.
Step 1: Determine if the Fair Market Rent (FMR) of $950 can cover the debt service on a property valued at $222,327. To make this assessment, calculate the monthly mortgage payment including principal, interest, taxes, and insurance (PITI). For a typical 30-year fixed-rate mortgage at an average rate of 5%, the monthly payment would be approximately $1,175. Given that the FMR of $950 does not exceed this amount, the answer to the first question is No. The FMR is insufficient to cover the debt service on a property of this value.
Step 2: Compare the Census ACS-reported market rent of $805 against the FMR of $950. The market rent is below the FMR, indicating that landlords who participate in the Section 8 program could potentially receive higher rents compared to the local market average.
Step 3: Evaluate the rental demand. With 23.8% of residents being renters and the days on market (DOM) information not available, the decision hinges on the percentage of renters alone. This percentage suggests a moderate demand for rental properties. However, without DOM data, it's difficult to assess how quickly properties are leased. Therefore, the answer to this step is It Depends.
If you're considering purchasing a property in ZIP 47620 for Section 8 investment, the decision tree leads to a cautious approach. The FMR does not sufficiently cover the debt service on a $222,327 property, which is a significant barrier. Although the FMR exceeds the market rent, ensuring higher income for Section 8 properties, the lack of DOM data leaves uncertainty about the speed at which you can lease out your property. Without a strong indicator of rapid leasing, the investment might not be as attractive as other areas with higher FMRs relative to property values or clearer signs of high demand.
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.