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 | $860 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,120 | $254,120 | 0.44% | F |
| 3BR | $1,450 | $322,240 | 0.45% | F |
| 4BR | $1,760 | $408,457 | 0.43% | F |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 46069, specifically in Sheridan, Indiana, presents a unique opportunity for landlords and small-portfolio investors due to the significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 46069 in fiscal year 2024 is set at $1100, whereas the Census American Community Survey (ACS) reports the average market rent at $742. This represents a gap of $358 per month, or approximately 48%.
The disparity between these figures makes this area a yield play for those who accept Section 8 vouchers. Given that the FMR exceeds the market rent, landlords can potentially receive higher monthly payments compared to what they would typically charge non-voucher tenants. This is particularly advantageous in a region where only 20.7% of residents are renters, indicating a smaller pool of potential tenants. By participating in the Section 8 program, landlords can secure steady rental income that aligns with the FMR rather than fluctuating market rates.
In the context of Sheridan, IN, where the median home value stands at $336,436 and the median household income is $76,990, the cost of housing voucher tenants below open-market rates is minimal. Accepting Section 8 vouchers allows landlords to tap into federal subsidies, ensuring reliable payment even if the tenant cannot afford the full market rent. This financial security is crucial for maintaining cash flow and property investment returns in a market where rents are generally lower.
Moreover, the higher FMR compared to the market rent means landlords can invest in property improvements without the risk of overpricing their units. In a community with limited rental demand, this strategy can help attract and retain tenants, thereby increasing occupancy rates and overall profitability. Landlords should be aware of the administrative requirements associated with the Section 8 program but the benefits in terms of yield and stability outweigh the costs in this scenario.
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.