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 | $920 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,200 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $930 | $132,543 | 0.7% | D |
| 2BR | $1,200 | $198,954 | 0.6% | D |
| 3BR | $1,480 | $279,351 | 0.53% | F |
| 4BR | $1,630 | $378,175 | 0.43% | F |
| 5BR | $1,891 | $445,127 | 0.42% | F |
U.S. Census Bureau data (2024)
The ZIP code 47720, located in Evansville, IN, has a population of 17,124, with 11.1% being renters. This indicates that it is not heavily dominated by renters but rather leans towards a homeowner-dominated area. The median household income stands at $75,139, which provides context for understanding the financial capabilities of potential tenants.
The market rent for the area is set at $1,042 per month, representing approximately 14% of the median household income. This percentage suggests that typical rents are relatively affordable compared to the average income level. However, it also implies that landlords might face competition from homeowners who can afford to buy property, potentially making it harder to attract a large number of Section 8 tenants.
When comparing the market rent to the Fair Market Rent (FMR) of $1,180 for FY 2024, it becomes evident that the actual rent is below the FMR threshold. This discrepancy could mean that landlords in ZIP 47720 may find it easier to accommodate Section 8 tenants, as the vouchers cover a higher portion of the rent relative to the market rate. It also signals that there is likely a significant demand for rental properties that fall within the budgetary constraints of Section 8.
A landlord in ZIP 47720 should expect tenants who are financially stable enough to benefit from the Section 8 program. These individuals or families will have a lower income, typically earning less than the median household income of the area. Given the income levels and the market rent, these tenants will be able to secure housing without the burden of paying an excessive amount of their income on rent. The lower market rent compared to the FMR ensures that the vouchers are sufficient to cover most of the monthly rent, making the properties attractive to those who qualify for assistance.
In conclusion, while ZIP 47720 is not predominantly a renter-heavy area, the financial dynamics suggest a viable market for Section 8 tenants. Landlords can anticipate a steady stream of applicants who are seeking affordable housing options and are capable of meeting the requirements of the program.
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.