Location: Putnam County, IN | Metro: Parke County, IN
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 | $790 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $910 | $130,853 | 0.7% | D |
| 2BR | $1,060 | $189,338 | 0.56% | F |
| 3BR | $1,470 | $258,380 | 0.57% | F |
| 4BR | $1,750 | $330,118 | 0.53% | F |
| 5BR | $2,030 | $359,506 | 0.56% | F |
U.S. Census Bureau data (2024)
ZIP 46135, located in Greencastle, Indiana, within the Putnam County metro area, presents itself as a strong candidate for a cash-flow anchor within a Section 8 portfolio strategy. The primary reason for this classification lies in the significant spread between the Fair Market Rent (FMR) and the actual market rent.
The FMR for a one-bedroom apartment in ZIP 46135 for fiscal year 2024 is set at $1110, while the current market rent stands at $918. This $192 difference per unit offers a substantial cushion for landlords, ensuring that even if market rents were to decline, the guaranteed Section 8 payments would still cover the costs and provide a reliable income stream. Given the median home value in the area is $242,205, the rental income from Section 8 vouchers can serve as a critical component in maintaining positive cash flow for real estate investments.
Moreover, the 0.2% price-cut share and 23-day Days on Market (DOM) indicate that the market in ZIP 46135 is relatively stable and efficient. This means that landlords are less likely to face prolonged vacancy periods or the need to reduce rental rates significantly to attract tenants, further supporting the role of this ZIP code as a cash-flow anchor.
While the 35.2% renter share and median income of $73,677 suggest a moderate level of tenant demand and financial stability, these factors do not outweigh the benefits of the FMR-market rent spread when considering the primary objective of securing consistent cash flow. Therefore, ZIP 46135 should be prioritized as a cash-flow anchor in any Section 8 investment strategy due to its favorable economic conditions and the protective buffer offered by the higher FMR compared to the market rent.
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.