Location: Muncie, IN | Metro: Anderson, 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 | $890 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,170 | $129,156 | 0.91% | C |
| 3BR | $1,530 | $198,291 | 0.77% | D |
| 4BR | $1,540 | $240,689 | 0.64% | D |
U.S. Census Bureau data (2024)
The classification of ZIP 46001, Alexandria, IN, hinges on its rental yield and market stability. With a Fair Market Rent (FMR) of $1110 for the fiscal year 2024, compared to the market rent of $831, the potential rental yield is substantial. The difference between FMR and market rent indicates that properties in this area can be rented at a premium, suggesting a higher-than-average yield.
The median home value in ZIP 46001 stands at $180,273. This figure, combined with the FMR and market rent, provides insight into the investment potential. Given that the FMR exceeds the market rent significantly, landlords can expect to see a positive cash flow when renting properties at the FMR rate. However, it's important to note that the actual yield will depend on the specific property costs and expenses.
Market stability is influenced by several factors, including the percentage of renters, the typical number of days on the market (DOM), and average household income. In ZIP 46001, 25.7% of residents are renters, which is a moderate figure indicating a balanced mix of homeowners and tenants. The lack of data on days on the market (DOM) suggests that there might be limited turnover, which could imply either a stable rental market or a less active one. The average household income of $70,962 supports the ability of residents to afford rents closer to the FMR, enhancing market stability.
Based on these figures, ZIP 46001 appears to be a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The significant gap between FMR and market rent suggests strong potential for positive cash flow, but the moderate percentage of renters and average income levels indicate a stable market environment. Landlords and small-portfolio investors should focus on properties that can be rented at or near the FMR to maximize returns while maintaining long-term tenant stability.
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.