Location: White County, IN | Metro: Warren 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 | $810 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,120 | $160,176 | 0.7% | D |
| 3BR | $1,350 | $220,578 | 0.61% | D |
| 4BR | $1,800 | $323,982 | 0.56% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 47970, which encompasses Otterbein, IN, Benton County, and part of the White County, IN metro area, reveals a favorable cashflow scenario for landlords. The HUD Fair Market Rent (FMR) for FY 2024 is set at $970, while the Census ACS indicates a market rent of $915. This means that voucher tenants will generally cashflow positively at the FMR rate, providing landlords with a margin above the local market average.
To derive the rent-to-price ratio, we use the median home value of $213,386. Dividing the annual FMR by the median home value gives us a ratio of approximately 5.49%. This ratio suggests that rental income is relatively high compared to property values, making it an attractive investment opportunity for those seeking to generate steady cashflow through rentals.
Note that the data does not provide specific figures for the median days on market (DOM) or the percentage of homes that experience price cuts during the selling process. However, given the positive cashflow potential, the rent-vs-buy dynamics appear to favor rental investments over buying properties for resale in this area.
The strongest investor angle in ZIP 47970 is cashflow. With voucher tenants paying above the market rate, landlords can expect consistent, positive returns on their investment without relying heavily on property appreciation or market stability for profitability.
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.