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 | $900 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,800 |
| 4 Bedrooms | $1,870 |
| 5 Bedrooms | $2,169 |
| 6 Bedrooms | $2,429 |
| 7 Bedrooms | $2,623 |
| 8 Bedrooms | $2,754 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,290 | $133,981 | 0.96% | C |
| 3BR | $1,800 | $201,744 | 0.89% | C |
| 4BR | $1,870 | $263,256 | 0.71% | D |
U.S. Census Bureau data (2024)
The classification of ZIP 47634 (Richland, IN) on the yield and stability axes reveals a nuanced market scenario that does not perfectly align with either high-yield/low-stability or steady-cashflow characteristics but rather falls into a middle ground.
On the yield axis, the Fair Market Rent (FMR) for the metropolitan area in fiscal year 2026 is set at $1,430. However, the actual market rent in ZIP 47634 is notably lower at $889. This discrepancy suggests a potential opportunity for landlords to achieve above-market rents through Section 8 participation, thereby enhancing their yield. The median home value of $183,277 provides a baseline for property investment costs, indicating a moderate entry point compared to higher-value markets.
Regarding stability, the percentage of renters in ZIP 47634 stands at 7.2%, which is relatively low. This figure implies a smaller pool of potential tenants, potentially leading to greater vacancy risks. The lack of available data on the number of days on market (DOM) makes it challenging to assess how quickly properties can be leased, but the average household income of $70,781 offers some assurance regarding the financial stability of tenants, assuming they qualify for Section 8 assistance.
Given these factors, ZIP 47634 leans towards a market that offers opportunities for moderate yields through Section 8 participation, yet it carries some inherent instability due to the limited rental population. Landlords and small-portfolio investors should weigh the potential for enhanced rental income against the risks associated with tenant turnover and qualification for housing assistance programs. The analysis points to a market that requires careful management and selective investment to balance yield and stability effectively.
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.