Location: Parke County, IN | Metro: Parke 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 | $890 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,560 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,560 | $229,718 | 0.68% | D |
U.S. Census Bureau data (2024)
When considering whether to invest in ZIP 47832 for Section 8 properties, follow these steps:
Step 1: Determine if the Fair Market Rent (FMR) of $1100 covers the debt service on a property valued at $202,067. The FMR is set by HUD for the fiscal year 2024 and represents the maximum amount that a Section 8 tenant can pay towards their rent. To decide, calculate your debt service, which includes mortgage payments, property taxes, insurance, and maintenance costs. If the total debt service is less than $1100 per month, then the answer is yes, FMR clears the debt service.
Step 2: Compare the market rent of $963 (as reported by the Census ACS) to the FMR. If the market rent is below the FMR, landlords can charge the higher FMR rate to Section 8 tenants, making the investment more attractive. If market rent equals or exceeds the FMR, landlords must accept the lower FMR rate, reducing potential profits. In ZIP 47832, since the market rent is below the FMR, you can charge the higher FMR rate, leading to a positive outcome.
Step 3: Assess the rental demand. In ZIP 47832, 16.9% of residents are renters, and the number of days on the market (DOM) is not available. Despite the lack of DOM data, the percentage of renters suggests a moderate level of demand. However, the absence of DOM data introduces uncertainty about how quickly units might be leased. Given the moderate renter percentage, it depends on other local factors such as employment rates and economic stability to ensure steady demand.
Decision Tree Summary:
Final Recommendation: For ZIP 47832, purchasing a Section 8 property is viable if the FMR of $1100 covers the debt service and local conditions support consistent demand. The higher FMR compared to market rent ensures better cash flow, but landlords must verify other factors affecting demand before making a final decision.
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.