Location: Knox County, IN | Metro: Sullivan County, IN HUD Metro FMR Area
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 | $1,310 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $97,362 | 1.04% | B |
| 3BR | $1,310 | $179,151 | 0.73% | D |
U.S. Census Bureau data (2024)
With a Fair Market Rent (FMR) set at $870 for ZIP 47838 in Carlisle, IN, for fiscal year 2024, landlords can expect a clear benchmark for rental pricing. The actual market rent, as per Census ACS data, stands at $671, indicating a significant gap between the government's valuation and what the local market is currently offering. This discrepancy presents an opportunity for landlords to potentially increase their rental rates while still remaining competitive and within the guidelines.
The median home value in ZIP 47838 is $155,053, reflecting a relatively affordable housing market for both buyers and renters. However, with only 14.1% of the population being renters, the demand for rental properties might be lower compared to other areas. This could affect the speed at which vacant units are filled and the overall competition among landlords.
Average income in the area is $61,875, which suggests that many residents have the financial stability to afford higher rents or even consider homeownership. Yet, the disparity between median income and median home value points towards a segment of the population that may rely on rental assistance programs like Section 8 to find affordable housing.
Despite the lack of specific data on days on market (DOM) and the percentage of price-cut shares, the underlying trends suggest a stable but not highly dynamic real estate market. Landlords should be cautious about overpricing their properties, as the local economy and rental habits indicate a preference for affordability.
In conclusion, ZIP 47838 offers a balanced opportunity for landlords participating in the Section 8 program, given the significant difference between the FMR and market rent. The median home value and income levels support a viable rental market, particularly for those seeking subsidized housing options. Verdict: Acceptable for Section 8 investment.
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.