Location: Anderson, 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 | $1,440 |
| 1 Bedroom | $1,450 |
| 2 Bedrooms | $1,900 |
| 3 Bedrooms | $2,490 |
| 4 Bedrooms | $2,500 |
| 5 Bedrooms | $2,900 |
| 6 Bedrooms | $3,248 |
| 7 Bedrooms | $3,508 |
| 8 Bedrooms | $3,683 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,900 | $152,212 | 1.25% | A |
| 3BR | $2,490 | $228,480 | 1.09% | B |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP 46048 in Ingalls, IN, reveals distinct scenarios based on the Federal Market Rent (FMR) and market rent figures. Using the annualized 2BR FMR of $1440 for FY 2024, the implied gross yield for a property in this area would be approximately 6.55%. This calculation is derived from dividing the annualized FMR by the median home value of $219,964.
In contrast, using the market rent figure of $1,379 from the Census ACS, the implied gross yield drops to about 6.27%. This yield is calculated similarly by annualizing the market rent and then dividing it by the median home value.
The difference between these two yields is marginal, with the FMR scenario providing a slightly higher return. However, when considering the actual investment potential, the market rent scenario appears more realistic. The reason lies in the 29.3% renter density in the area, which suggests that a significant portion of the population prefers homeownership over renting. Additionally, the lack of data on days on market (DOM) indicates either low turnover or a stable rental market where properties are not frequently changing hands. This stability can impact the ability to consistently achieve the higher FMR rents.
Scenario 1: With the FMR of $1440, the annual income would be $17,280. Given the median home value of $219,964, the gross yield is calculated as follows: ($17,280 / $219,964) * 100 = 6.55%.
Scenario 2: Using the market rent of $1,379, the annual income would be $16,548. The gross yield based on the median home value is: ($16,548 / $219,964) * 100 = 6.27%.
While the FMR provides a higher theoretical yield, the market conditions suggest that achieving such rents might be challenging. Landlords and small-portfolio investors should consider the local market dynamics and the relatively low renter density when evaluating the potential returns from Section 8 properties in ZIP 46048. The market rent scenario, though lower, offers a more grounded expectation for gross yield.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.