Location: Spencer 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 | $770 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,280 |
| 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 |
|---|---|---|---|---|
| 2BR | $1,010 | $188,129 | 0.54% | F |
| 3BR | $1,280 | $276,339 | 0.46% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP 47637 in Tennyson, IN, reveals a favorable environment for cashflow. The HUD Fair Market Rent (FMR) for the area is set at $900 for fiscal year 2024, which is slightly above the market rent of $864 based on Census ACS data. This indicates that voucher tenants will provide a marginal positive cashflow, assuming standard operating costs.
To further understand the investment potential, consider the median home value in the area, which stands at $254,617. Using the HUD FMR of $900, the rent-to-price ratio can be calculated as approximately 0.42%. This ratio suggests that rental income represents a small percentage of the property's value, indicating that appreciation rather than rental income might be the primary driver of returns in this market.
The dynamics between renting and buying are also important. However, with the median Days on Market (DOM) and the percentage of homes that experienced price cuts being not available (N/A), it is challenging to draw definitive conclusions about the relative attractiveness of renting versus buying. Nonetheless, the slight premium of voucher rents over market rates supports a stable rental market.
In conclusion, the strongest angle for investors in ZIP 47637 is likely to be appreciation. While there is a marginal cashflow advantage with voucher tenants, the low rent-to-price ratio points towards potential gains from property value increases, making it an attractive option for those looking to build long-term equity.
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.