Location: Jasper County, IN | Metro: Gary, 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 | $1,010 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,690 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,320 | $236,131 | 0.56% | F |
| 3BR | $1,690 | $310,186 | 0.54% | F |
| 4BR | $1,740 | $384,786 | 0.45% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 46310, DeMotte, IN, provides a clear snapshot of potential investment yields. Using the annualized Fair Market Rent (FMR) for a 2-bedroom unit at $1140, and the market rent at $1,011, we can calculate the gross yield against the median home value of $305,866.
In the case of Section 8 FMR, the annual rental income would be $1140. Dividing this by the median home value gives an implied gross yield of approximately 0.37%. For the market rent scenario, the annual rental income would be $1,011, leading to an implied gross yield of roughly 0.33%.
Given the 11.0% renter density in DeMotte, it's important to note that the demand for rental properties, particularly those under Section 8, might be limited. The N/A-day DOM (Days on Market) suggests either very quick sales or a lack of recent transaction data, making it difficult to gauge the typical time it takes to sell a property in this area.
The higher gross yield from the Section 8 FMR scenario makes it seem more attractive at first glance. However, the lower renter density implies that there could be challenges in finding and retaining tenants who qualify for the Section 8 program. Market rents, while slightly lower in gross yield, may offer a broader pool of potential tenants and thus more stability in occupancy rates.
Investors should consider the trade-off between the slightly higher yield from Section 8 and the potentially greater ease of managing a property at market rates. While the gross yield difference is minimal, the practical considerations of tenant management and local rental market dynamics could significantly impact overall profitability.
In conclusion, while the Section 8 FMR offers a higher gross yield of 0.37%, compared to the market rent's 0.33%, the reality of the rental market in DeMotte, IN, must be factored into investment decisions. The 11.0% renter density and uncertain DOM data suggest that securing long-term tenancy under Section 8 may be challenging, making market-rate rentals a more practical option despite the marginally lower yield.
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.