Location: Montgomery County, IN | Metro: Fountain County, IN
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 | $890 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,410 | $206,478 | 0.68% | D |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 47994, located in Montgomery County, Indiana, reveals that the HUD Fair Market Rent (FMR) of $990 for the fiscal year 2026 is the benchmark for voucher tenants. However, due to the lack of available market rent data, it's challenging to directly compare the HUD FMR to local rental rates. Based on the HUD FMR alone, voucher tenants would typically cashflow at the $990 rate, meaning that landlords would likely break even or see minimal profit without premium units. This suggests that landlords should focus on properties that offer additional amenities or are in better condition to command higher rents.
The median home value in ZIP 47994 is $213,211, which can be used to derive a rent-to-price ratio. Assuming an average mortgage rate and property taxes, a reasonable rent-to-price ratio for this area would indicate that rents should be around 1% of the median home value. This translates to approximately $1,777 per month, significantly above the HUD FMR of $990. The disparity between the FMR and potential market rents highlights the importance of understanding the local housing market dynamics beyond just the HUD figures.
Despite the absence of specific data on median Days on Market (DOM) and the percentage of homes that required price cuts, these metrics are crucial for assessing the rent-versus-buy dynamics. If DOM is low and price cuts are rare, it signals a strong seller’s market where rental properties can potentially command higher rents, improving cashflow for landlords. Conversely, if DOM is high and price cuts are common, it may suggest a buyer’s market, which could affect the demand for rental properties.
The strongest investor angle in ZIP 47994 is stability. Given the consistent median home values and the likelihood of steady demand for rental properties, investors can expect reliable and predictable cashflows from their Section 8 properties. Stability provides a solid foundation for long-term investment strategies, especially when dealing with government-backed vouchers.
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.