Location: Sullivan County, IN | Metro: Sullivan County, IN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $940 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $2,000 |
| 5 Bedrooms | $2,320 |
| 6 Bedrooms | $2,598 |
| 7 Bedrooms | $2,806 |
| 8 Bedrooms | $2,946 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 47849 provides a clear picture of potential investment returns based on the Fair Market Rent (FMR) and median home value data available.
The annualized 2BR FMR for ZIP 47849 in fiscal year 2024 is set at $960 per month. Given the median home value of $179,492, this translates into an implied gross yield of approximately 6.38%. This calculation is derived by taking the annual rent ($960 x 12 months = $11,520) and dividing it by the median home value ($179,492).
In contrast, the market rent for the area is currently not available (N/A). Without specific market rent figures, it's impossible to provide a precise gross yield for this scenario. However, assuming that market rents typically exceed FMRs, the gross yield would likely be higher than the 6.38% calculated using the FMR.
Given the 17.7% renter density in ZIP 47849, it's important to note that the demand for rental properties, including those participating in the Section 8 program, is relatively low compared to areas with higher renter populations. This lower density suggests that landlords might face challenges in maintaining consistent occupancy rates, particularly if market rents are significantly higher than the FMR.
The Days on Market (DOM) figure is also not available, which means we cannot assess how quickly properties are being rented out. A high DOM could indicate difficulty in finding tenants, which would impact the overall yield and cap rate negatively.
Based on the available data, the gross yield of 6.38% using the FMR is the most concrete figure we can provide. While market rents could offer a higher gross yield, the lack of specific figures makes this scenario less reliable for precise financial planning. Landlords should consider the lower renter density and potential challenges in maintaining occupancy when evaluating the attractiveness of this ZIP code for Section 8 investments.
Data Sources: FMR data from HUD (2027). 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.