Location: Kokomo, IN | Metro: Tipton 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 | $1,050 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,380 |
| 3 Bedrooms | $1,640 |
| 4 Bedrooms | $1,810 |
| 5 Bedrooms | $2,100 |
| 6 Bedrooms | $2,352 |
| 7 Bedrooms | $2,540 |
| 8 Bedrooms | $2,667 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,380 | $185,585 | 0.74% | D |
| 3BR | $1,640 | $266,457 | 0.62% | D |
| 4BR | $1,810 | $337,670 | 0.54% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering investing in ZIP 46068, Sharpsville, IN, might raise several valid concerns regarding the feasibility of rental investments, particularly those participating in the Section 8 Housing Choice Voucher program. Let's address these concerns directly with the available data.
Objection 1: Will Fair Market Rent (FMR) of $1020 cover the mortgage on a $265,742 home?
The FMR of $1020 for ZIP 46068 in fiscal year 2024 is a critical figure for landlords considering participation in the Section 8 program. To determine if this amount can cover the mortgage on a $265,742 home, we must calculate the potential monthly mortgage payment. Assuming a typical interest rate of around 4.5% and a 30-year fixed-rate mortgage, the monthly payment would be approximately $1300. At first glance, the FMR does not cover the entire mortgage payment, leaving a shortfall of roughly $280 per month. However, it's important to note that property taxes, insurance, and maintenance costs must also be factored into the total expenses. Landlords should ensure they have a comprehensive understanding of all associated costs before making an investment decision.
Objection 2: Is there enough renter demand at 7.6%?
The percentage of renter-occupied housing units in ZIP 46068 stands at 7.6%, which is notably low compared to national averages. This raises questions about the availability of tenants willing to pay market rates or participate in the Section 8 program. Despite this low percentage, the actual number of renters in the area can still provide a stable tenant pool. According to the latest data, the total number of occupied housing units is 1,316, indicating that there are approximately 99 renter-occupied units. While this may seem limited, it's crucial to consider the local economy and job market, which could influence the demand for rental properties. Additionally, the presence of nearby institutions such as schools or hospitals might attract additional renters.
Objection 3: Will vouchers keep pace with $955 market rents?
The market rent in ZIP 46068 is estimated at $955, slightly below the FMR of $1020. A key concern is whether the Section 8 voucher payments will adjust to match the increasing market rents. The Housing Authority regularly reviews and adjusts voucher amounts to reflect changes in the cost of living and market conditions. However, the data does not provide a definitive forecast on future adjustments. It's advisable for investors to monitor local housing authority announcements and trends in the cost of living to anticipate potential changes in voucher amounts. Given the current FMR, landlords can expect that voucher payments will likely remain close to the $1020 mark, providing a reasonable assurance of covering their costs, even if not perfectly aligning with the exact market rent.
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.