Location: Clinton County, IN | Metro: Carroll County, 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 | $920 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,170 | $219,487 | 0.53% | F |
| 3BR | $1,530 | $289,455 | 0.53% | F |
| 4BR | $1,590 | $358,400 | 0.44% | F |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 46065, centered around Rossville, Indiana, presents a unique opportunity for landlords and small-portfolio investors due to the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 46065 in fiscal year 2024 is set at $1070, whereas the Census American Community Survey (ACS) indicates that the market rent stands at $1,011. This means that the FMR exceeds the market rent by $59, or approximately 5.8%.
This gap makes voucher tenants particularly attractive in Rossville. With the government covering rents above the market rate, landlords can secure a higher yield compared to renting out properties at the prevailing market rate. Given that only 16.6% of residents are renters, there is a limited pool of potential tenants, making it even more advantageous to leverage the guaranteed payments from the Section 8 program.
Rossville's median home value is $288,511, and the median income is $80,104. These figures suggest that homeownership is relatively affordable, but rental income remains competitive. The higher payment guarantee from the Section 8 program allows landlords to charge closer to the FMR without the risk of non-payment, which can be common with lower-income tenants in areas where market rents are volatile.
Investors should note that while the FMR provides a higher rental income, the overall maintenance and management costs must still be considered. However, the financial stability offered by the Section 8 program can offset these concerns, ensuring a steady cash flow. In summary, the FMR exceeding the market rent by $59 in Rossville, Indiana, positions Section 8 as a valuable strategy for maximizing returns in a rental market with a modest share of renters.
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.