Section 8 Fair Market Rent (FMR) for ZIP 47957 - 2027

Location: Pulaski County, IN | Metro: Jasper County, IN HUD Metro FMR Area

Investment Score for ZIP 47957

Monthly Rent (2BR)

$1,240

Median Price (2BR)

$138,349

1% Rule

0.9%

Annual Yield

10.76%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$930
1 Bedroom	$1,090
2 Bedrooms	$1,240
3 Bedrooms	$1,720
4 Bedrooms	$2,070
5 Bedrooms	$2,401
6 Bedrooms	$2,689
7 Bedrooms	$2,904
8 Bedrooms	$3,049

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,240	$138,349	0.9%	C
3BR	$1,720	$191,415	0.9%	C
4BR	$2,070	$257,779	0.8%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

2,071

Median Household Income

$61,002

Housing Units

934

Renter Percentage

22.4%

Occupancy Rate

80.2%

Renter Occupied

168

If you're considering purchasing a property in ZIP code 47957 (Medaryville, IN) for Section 8 investment, follow this decision tree:

Step 1: Debt Service Coverage Ratio (DSCR)

The Fair Market Rent (FMR) for ZIP 47957 in fiscal year 2024 is $1090. To determine if this clears the debt service on a property valued at $174,098, calculate your DSCR. If your DSCR is less than 1, the FMR does not cover your debt service. For example, if the total annual debt service is $12,000, then the monthly cost would be $1000. With an FMR of $1090, you can cover the debt service. However, if the debt service is higher, say $15,000 annually ($1250 monthly), then the FMR does not clear the debt service.

Decision:

Yes: If the FMR of $1090 covers the monthly debt service.
No: If the FMR of $1090 does not cover the monthly debt service.

Step 2: Market Rent vs. FMR

The average market rent in Medaryville, IN, according to the Census ACS, is $846. This is below the FMR of $1090. A market rent below the FMR suggests that Section 8 tenants might be able to pay the difference between the market rent and the FMR, making the property more attractive for Section 8 investment.

Decision:

Yes: If the market rent is below the FMR, indicating potential for additional income from non-Section 8 sources.
No: If the market rent equals or exceeds the FMR, there's little to no incentive for Section 8 tenants.
It Depends: If the market rent is close to the FMR, consider other factors such as location and property condition.

Step 3: Demand Analysis

In ZIP 47957, 22.4% of residents are renters. The data shows that the days on market (DOM) is not available, which could indicate either a very active or inactive rental market. However, given the percentage of renters, there is some level of demand for rental properties.

Decision:

Yes: If the percentage of renters and the implied demand are sufficient to ensure steady occupancy.
No: If the percentage of renters is too low to sustain a viable rental business.
It Depends: If the percentage of renters is marginal, evaluate the local economy and job market for stability.

Based on the analysis above, the decision to purchase a property in ZIP 47957 for Section 8 investment hinges on the debt service coverage ratio, the comparison between market rent and FMR, and the demand for rentals. Ensure that the FMR covers your debt service, the market rent is below the FMR, and there is enough demand from renters to make this a profitable venture.

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.