Location: Henry County, 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 | $1,120 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,470 |
| 3 Bedrooms | $1,920 |
| 4 Bedrooms | $1,940 |
| 5 Bedrooms | $2,250 |
| 6 Bedrooms | $2,520 |
| 7 Bedrooms | $2,722 |
| 8 Bedrooms | $2,858 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,470 | $200,820 | 0.73% | D |
| 3BR | $1,920 | $280,620 | 0.68% | D |
| 4BR | $1,940 | $376,733 | 0.51% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering real estate investments in ZIP 46056 (Markleville, IN) might have several concerns regarding the feasibility and profitability of such an investment. Here are some common objections, addressed with the available data:
Objection 1: Will Fair Market Rent (FMR) of $1240 (for zip FY 2024) cover the mortgage on a $277,591 home?
The Fair Market Rent (FMR) of $1240 in Markleville, IN, is unlikely to cover the mortgage on a $277,591 home. A typical 30-year fixed-rate mortgage at a current average rate of around 6% would result in a monthly payment of approximately $1,650. This figure does not include property taxes, insurance, and maintenance costs, which can add significantly to the total monthly expenses. Therefore, relying solely on FMR would not be sufficient to cover these costs.
Objection 2: Is there enough renter demand at 18.2%?
The rental demand in Markleville, IN, stands at 18.2%. While this percentage indicates that there is a segment of the population seeking rental properties, it is important to note that this rate is relatively low compared to other areas. However, the actual number of potential renters depends on the total population size. To provide a more accurate assessment, we need to know the total population of the area. With only the 18.2% figure, it's challenging to determine if this level of demand is sufficient to sustain a rental property.
Objection 3: Will vouchers keep pace with $1,085 market rents?
Vouchers are designed to help low-income families afford housing. The voucher amount typically covers a portion of the market rent, but whether it will keep pace with the $1,085 market rents in Markleville, IN, is uncertain. According to recent data, the average voucher amount has been increasing but still lags behind market rates in many areas. To ensure that vouchers can cover the rent, landlords should verify the specific voucher amounts available in their region and consider the possibility of requiring tenants to pay a portion of the rent out-of-pocket.
In conclusion, while investing in Markleville, IN, may present opportunities, careful consideration of the financial aspects and market conditions is necessary. The FMR alone is insufficient to cover the mortgage on a $277,591 home, and the rental demand percentage needs context to assess its adequacy. Lastly, voucher amounts must be closely monitored to ensure they align with market rents.
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.