Location: Clinton County, IN | Metro: Indianapolis-Carmel, 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 | $900 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,950 |
| 5 Bedrooms | $2,262 |
| 6 Bedrooms | $2,533 |
| 7 Bedrooms | $2,736 |
| 8 Bedrooms | $2,873 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,240 | $161,742 | 0.77% | D |
| 3BR | $1,620 | $244,242 | 0.66% | D |
U.S. Census Bureau data (2024)
Kempton, IN, ZIP code 46049, is a small, predominantly owner-occupied community with a total population of 763 individuals. Only 10.7% of the residents are renters, indicating a strong preference for homeownership among the local populace. The area boasts a robust median household income of $83,594, which is significantly above the national average. This economic strength is further reflected in the median home value of $210,604, suggesting a stable and prosperous residential environment.
However, despite the high median income and home values, the rental market in Kempton, IN, presents an interesting dynamic. The Fair Market Rent (FMR), which is set by HUD for the fiscal year 2024, stands at $1680 per month. In stark contrast, the actual market rent, according to the Census Bureau's American Community Survey (ACS), is much lower at $829 per month. This discrepancy highlights a potential opportunity for landlords and small-portfolio investors looking to capitalize on the government-subsidized housing market through Section 8 vouchers.
The hands-off operator might find Kempton, IN, less appealing due to the low market rents compared to the FMR. However, the hands-on value-add buyer could see significant potential here. By leveraging the higher FMR rates available through Section 8 vouchers, such an investor could renovate properties and charge closer to the subsidized rate, thereby increasing profitability. Additionally, the relatively low number of renters suggests that there is room for growth in the rental market, making it an attractive option for those willing to actively manage their investments.
In conclusion, while Kempton, IN, offers a stable and economically sound environment, the disparity between market rents and FMR presents a unique challenge and opportunity for Section 8 investors. For those who can take advantage of the subsidy system and are prepared to engage in property management, ZIP 46049 could prove to be a valuable addition to their portfolio.
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.