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 | $990 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,590 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,290 | $216,014 | 0.6% | F |
| 3BR | $1,590 | $290,765 | 0.55% | F |
| 4BR | $1,760 | $423,918 | 0.42% | F |
| 5BR | $2,042 | $609,324 | 0.34% | F |
U.S. Census Bureau data (2024)
Newburgh, Indiana, located in ZIP code 47630, presents a mixed environment for landlords and small-portfolio investors interested in Section 8 tenants. With a population of 39,818, the area has a significant rental market, but it is not dominated by renters. Only 19.7% of residents are renters, indicating that the majority of the population prefers homeownership. This suggests that while there is a tenant pool available, it may not be as large as in areas with higher percentages of renters.
The median household income in Newburgh is $94,162, which is relatively high compared to national averages. However, the market rent for the area stands at $1,464 per month, which represents approximately 18.2% of the median household income. This is a substantial portion of income dedicated to housing, especially when considering that the Fair Market Rent (FMR) for the area is set at $1,250 for FY 2024. The discrepancy between the market rent and the FMR indicates that rents in Newburgh are above the average cost of renting in similar areas, potentially making it challenging for low-income families to afford housing without assistance.
The FMR of $1,250 is the benchmark used by the U.S. Department of Housing and Urban Development (HUD) to determine the maximum amount that a Section 8 voucher can cover. Landlords who wish to attract Section 8 tenants must ensure their rental rates do not exceed this amount. Given that the market rent is higher at $1,464, landlords may need to adjust their pricing to align with the FMR if they want to participate in the Section 8 program effectively.
In terms of tenant profiles, landlords in Newburgh should expect a mix of working-class individuals and families who rely on Section 8 vouchers due to the high cost of living relative to the FMR. These tenants will likely have a strong commitment to paying rent on time and maintaining their homes, given the rigorous screening process associated with the Section 8 program. While the rental market is not heavily concentrated, the presence of a sizeable number of voucher holders means that landlords can still benefit from stable tenancy and government-backed rent payments.
To conclude, ZIP code 47630 is not a renter-heavy area with an abundance of Section 8 voucher demand. Instead, it is a place where landlords must balance their rent prices with the realities of the FMR to attract and retain Section 8 tenants. The typical rent consumes a significant portion of the local income, highlighting the importance of the Section 8 program in providing affordable housing options to those who might otherwise struggle to find suitable accommodation.
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.