Location: Sullivan 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 | $990 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,680 |
| 4 Bedrooms | $2,190 |
| 5 Bedrooms | $2,540 |
| 6 Bedrooms | $2,845 |
| 7 Bedrooms | $3,073 |
| 8 Bedrooms | $3,227 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,680 | $166,064 | 1.01% | B |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 47861 in fiscal year 2024 is set at $920. This figure represents the maximum amount that a landlord can charge a Section 8 tenant for rent. It's important to note that this is not the actual rent you will receive; it's the benchmark used by the Housing Choice Voucher Program to ensure that rents are reasonable.
In comparison, the average rent for ZIP 47861 based on Census American Community Survey data is $1,077. This suggests that the FMR is slightly below the market rate, which could mean that landlords might need to adjust their expectations if they plan to participate in the Section 8 program.
The renter share in this area is 16.3%, indicating that there is a moderate demand for rental properties among low-income families who may qualify for Section 8 assistance. This percentage also implies that about one in every six households in ZIP 47861 are renters, which can be a useful metric when assessing potential occupancy rates.
If you're looking to acquire a property in ZIP 47861, the median home value is around $140,426. This figure can help you gauge the initial investment required for a Section 8 rental property. Keep in mind that the FMR does not account for maintenance costs, utilities, or other expenses that come with owning a rental property.
Before committing to a Section 8 rental, one critical factor to verify is the condition of the property. The Housing Quality Standards (HQS) must be met for a property to be approved under the Section 8 program. This includes ensuring that the property is safe, decent, and sanitary, with no major repairs needed. A thorough inspection and any necessary renovations can save you time and money in the long run.
Participating in the Section 8 program can provide a steady stream of income, but it requires compliance with federal guidelines and an understanding of the local rental market. With the FMR at $920 and the average rent at $1,077, you should carefully consider whether the benefits outweigh the potential lower rental income compared to market rates.
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.