Location: Putnam County, IN | Metro: Owen 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 | $760 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $200,310 | 0.5% | F |
| 3BR | $1,400 | $274,622 | 0.51% | F |
| 4BR | $1,670 | $332,828 | 0.5% | F |
U.S. Census Bureau data (2024)
In Cloverdale, Indiana (ZIP 46120), the real estate market presents a nuanced picture that reflects both stability and potential opportunities for strategic investment. The median home value stands at $256,411, indicating a relatively affordable market compared to national averages. However, the fact that only 0.3% of listings have been reduced suggests strong seller pricing power. This low percentage of price reductions implies that homes are selling close to their asking prices, a trend that could persist given the current market conditions.
The median days on market (DOM) being listed as N/A suggests either very rapid sales or an unusually high rate of off-market transactions, such as pre-sales or private sales. Both scenarios point towards a robust demand for housing in the area, which supports the notion of sustained pricing power. Landlords and small-portfolio investors can leverage this by maintaining competitive rental rates while keeping an eye on the home sale market for potential buy-to-rent opportunities.
On the rental side, the Federal Market Rent (FMR) for ZIP 46120 in fiscal year 2024 is set at $1,150, while the current market rent, according to the Census ACS, is $825. This discrepancy indicates a significant upside potential for rental income if the market adjusts to meet the FMR. Investors should prepare for possible increases in rental rates as the market moves toward equilibrium, benefiting those who can hold onto properties for the longer term.
For long-term investors, the setup in Cloverdale signals a realistic appreciation thesis. With strong seller pricing power and a potential upward shift in rental rates, property values are likely to increase. This appreciation will be driven by the convergence of market rents towards the FMR, suggesting a steady growth trajectory for the next 12 to 24 months. However, it's important to note that appreciation is also contingent upon broader economic factors and local market dynamics, which must be continuously monitored.
To summarize, Cloverdale's real estate market, characterized by a median home value of $256,411, minimal price reductions, and a gap between FMR and actual market rents, points to a scenario where sellers maintain significant pricing power. The rental market shows potential for growth, aligning with the broader appreciation thesis for the area. These conditions collectively suggest a favorable environment for landlords and small-portfolio investors looking to capitalize on current trends and position themselves for future gains.
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.