Location: Tipton 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 | $930 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,950 |
| 5 Bedrooms | $2,262 |
| 6 Bedrooms | $2,533 |
| 7 Bedrooms | $2,736 |
| 8 Bedrooms | $2,873 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,240 | $173,470 | 0.71% | D |
| 3BR | $1,620 | $248,264 | 0.65% | D |
| 4BR | $1,950 | $321,966 | 0.61% | D |
| 5BR | $2,262 | $362,616 | 0.62% | D |
U.S. Census Bureau data (2024)
The Section 8 housing analysis for ZIP code 46072, located in Tipton, Indiana, reveals a significant financial opportunity for landlords and small-portfolio investors. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $1680, while the actual market rent, according to Census ACS data, is only $837. This creates a substantial gap of $843, which translates to a 50.2% difference between what the government will pay and what the market currently demands.
This gap makes Tipton an attractive location for a yield play. Landlords can secure rental income that is closer to the FMR through Section 8 vouchers, ensuring a higher return on investment compared to the local market rate. Despite the lower market rent, the FMR provides a buffer that allows property owners to achieve better cash flows without having to compete with other local rentals that might be priced below the voucher amount.
Tipton's demographic context further supports this analysis. With 25.3% of residents being renters, there is a notable demand for affordable housing. The median home value stands at $239,418, indicating a stable real estate market. However, the median household income of $72,375 suggests that many residents may struggle to afford market-rate rents without assistance, making the Section 8 program particularly relevant.
The financial implications of this gap are clear. By participating in the Section 8 program, landlords can avoid the risk of renting below the FMR, which would otherwise reduce their potential earnings. Instead, they can leverage the government subsidy to attract tenants who can afford the higher voucher rate, thereby increasing their rental income and overall portfolio yield.
In conclusion, the disparity between the FMR and the actual market rent in Tipton, IN, presents a compelling case for landlords to consider the Section 8 program as a means to enhance their rental income. This strategy is especially beneficial given the local economic conditions and the existing demand for subsidized housing.
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.