Location: Gibson County, IN | Metro: Gibson 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 | $870 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,150 | $156,924 | 0.73% | D |
| 3BR | $1,450 | $241,456 | 0.6% | D |
| 4BR | $1,620 | $293,682 | 0.55% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 47665, centered around Owensville, IN, highlights a significant financial opportunity for landlords and small-portfolio investors due to the gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area for fiscal year 2026 is set at $1,080, whereas the market rent based on Census ACS data is $965. This means that the FMR is $115 higher than the market rent, representing an increase of approximately 12%.
This discrepancy makes voucher tenants particularly attractive for yield-focused investments. Landlords can secure a steady stream of rental income at rates above the local market average, without the typical risks associated with market fluctuations. The guaranteed payment of $1,080 per month, regardless of the tenant's contribution, ensures a higher rental yield compared to the prevailing market rate.
In the context of Owensville, where only 16.5% of residents are renters, and the median home value stands at $231,157 with a median income of $68,625, the opportunity is clear. The relatively low percentage of renters suggests that rental properties are fewer, making it easier to attract and retain tenants. Additionally, the higher FMR compared to the local market rent means that landlords can potentially charge more than what most tenants would pay out-of-pocket, thus benefiting from the voucher program.
However, if the FMR were below the market rent, which is not the case here, it would indicate a different scenario. In such a situation, landlords might face the cost of housing voucher tenants below the open-market rates. This could mean accepting lower rents than the market allows, which might not be financially viable for some landlords. But given the current situation, where FMR exceeds market rent, landlords in ZIP 47665 can leverage this gap to their advantage, ensuring a consistent and slightly above-average income stream.
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.