Location: Putnam County, IN | Metro: Montgomery 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 | $870 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,910 |
| 5 Bedrooms | $2,216 |
| 6 Bedrooms | $2,482 |
| 7 Bedrooms | $2,681 |
| 8 Bedrooms | $2,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,160 | $202,589 | 0.57% | F |
| 3BR | $1,610 | $284,181 | 0.57% | F |
| 4BR | $1,910 | $306,836 | 0.62% | D |
U.S. Census Bureau data (2024)
The potential risks for a first-time Section 8 landlord investing in ZIP 46172 in Roachdale, IN, are significant. Tenant turnover is a primary concern, with the market rent at $1,002 being substantially lower than the Fair Market Rent (FMR) of $1,260 for FY 2024. This gap suggests that tenants might be attracted by the lower market rent but could struggle to maintain it when the lease ends, leading to frequent turnovers.
Vacancy exposure is another issue. The days on market (DOM) data is not available, which makes it difficult to predict how long a unit might remain vacant. However, given the typical home value of $259,622 and the median income of $85,912, there's a considerable disparity between housing costs and residents' ability to pay, potentially increasing the likelihood of vacancies.
Deferred maintenance is also a risk factor. The typical home value indicates that properties may require substantial investments to keep them up to code and in good condition, which can be a financial burden for landlords, especially if they are managing multiple units.
Despite these challenges, the high renter share of 17.4% provides a silver lining. A larger proportion of renters typically translates into higher demand for rental properties, including those accepting Section 8 vouchers. This increased demand can help mitigate some of the risks associated with tenant turnover and vacancy rates.
In conclusion, the risks for a first-time Section 8 landlord in ZIP 46172 are moderate. While there are significant concerns regarding tenant turnover, vacancy exposure, and deferred maintenance, the high renter density offers a stable base of potential tenants, reducing overall risk.
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.