Location: Grant County, IN | Metro: Anderson, IN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $920 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP 46070 (Summitville, IN) reveals some interesting insights. Using the Fair Market Rent (FMR) for a 2-bedroom apartment at $1030 per month, the annualized income would be $12,360. Given the median home value of $183,026, the implied gross yield from the FMR scenario is approximately 6.75%. This calculation is derived by dividing the annualized income by the property value.
Contrastingly, using the market rent figure of $760 per month from the Census ACS, the annualized income drops to $9,120. The implied gross yield under this market rent scenario is roughly 4.98%, calculated similarly by dividing the annualized income by the median home value.
To determine which scenario is more realistic, consider the 14.8% renter density in Summitville. A higher percentage of renters typically suggests a stronger demand for rental properties, potentially making the FMR scenario more plausible. However, the lack of data on days on market (DOM) leaves a critical gap in understanding the actual speed and ease of renting out properties in this area.
In conclusion, the gross yield from the FMR scenario stands at 6.75%, while the market rent scenario yields about 4.98%. Given the higher renter density, the FMR-based gross yield appears more realistic. Nonetheless, without specific DOM data, it's challenging to predict how quickly landlords can turn over units and achieve these yields consistently.
Data Sources: FMR data from HUD (2027). 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.