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 | $1,040 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,370 |
| 3 Bedrooms | $1,790 |
| 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 | $1,370 | $152,209 | 0.9% | C |
| 3BR | $1,790 | $201,466 | 0.89% | C |
| 4BR | $1,800 | $259,592 | 0.69% | D |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 46017 is centered around the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 46017 in fiscal year 2024 is set at $1210, whereas the Census ACS indicates that the market rent is $980. This represents a gap of $230, or approximately 19.1%.
Given that the FMR exceeds the market rent, landlords and small-portfolio investors can leverage this situation to maximize their yields. Voucher tenants, who are guaranteed the FMR payment, provide a stable and higher rental income compared to the open-market rates. For instance, an investor can expect a rental income of $1210 per month from a voucher tenant, which is significantly above the average market rent of $980.
This scenario makes ZIP 46017 a favorable location for those looking to capitalize on the yield potential offered by Section 8 vouchers. With only 16.9% of residents being renters and a median home value of $189,995, it's evident that homeownership is predominant in this area. However, the median income of $75,011 suggests that many renters might struggle to afford market rents without assistance.
The cost of housing voucher tenants below open-market rates is minimal since the government covers the difference between the market rent and the FMR. This means that landlords do not have to lower their rents to attract tenants; instead, they can maintain market rates and still receive the full FMR amount from the housing authority.
To summarize, the 19.1% gap between the FMR and market rent in ZIP 46017 presents a compelling opportunity for landlords and small-portfolio investors to achieve better yields through Section 8 voucher programs. The financial stability provided by these programs ensures consistent cash flow, making it a reliable investment strategy in this market.
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.