Location: Marshall County, IN | Metro: Fulton County, IN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 46501 (Argos, IN) for Section 8 investment, follow this decision tree:
1) Does FMR $1,010 (metro FY 2026) clear debt service on a $219,384 property?
Yes. The Fair Market Rent (FMR) of $1,010 is sufficient to cover the debt service on a property valued at $219,384. This assumes an average interest rate and loan terms that are typical for the area. With the FMR exceeding the necessary income to service the debt, you can expect to meet your financial obligations comfortably.
No. If the FMR of $1,010 does not cover the debt service on a $219,384 property, then purchasing here would be financially unwise. The FMR must be high enough to ensure that the rental income covers all costs associated with owning the property, including mortgage payments, taxes, insurance, and maintenance.
It depends. If the margin between the FMR and debt service is slim, you need to consider other factors such as vacancy rates and the cost of utilities. A tight margin could make the investment risky if any unexpected expenses arise.
2) Is market rent $949 (Census ACS) above, at, or below FMR?
Above. If the market rent of $949 is higher than the FMR, you might face challenges in finding tenants willing to pay the lower Section 8 rate. This situation could lead to prolonged vacancies and reduced cash flow.
At or Below. If the market rent matches or is slightly below the FMR, then you are likely to find tenants who qualify for Section 8 housing vouchers. This alignment reduces the risk of vacancies and ensures a steady stream of income.
3) Are 19.9% renters + N/A-day DOM enough demand?
Yes. With 19.9% of the population being renters, there is a significant demand for rental properties. However, the lack of data on days on market (DOM) means you cannot assess how quickly units are typically rented out. If you can confirm that units are rented quickly, this supports a positive outlook on demand.
No. If the percentage of renters is low, or if the DOM is high, indicating slow rental rates, then demand is insufficient. In such a scenario, the investment would not be viable due to potential long-term vacancies.
It depends. Given the 19.9% of renters, demand seems reasonable but is contingent upon other factors. For instance, if there is a growing population or new job opportunities in Argos, this could increase the number of renters and reduce DOM. Conversely, if the local economy is stagnant, the current demand might not sustain itself over time.
If you answer "Yes" to all three questions, then purchasing in ZIP 46501 for Section 8 investment is advisable. If any question leads to a "No," reconsider the investment. If the answers are mixed, further research into the local market conditions and trends is required before making a final decision.
Data Sources: FMR data from HUD (2027). 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.