Location: Marshall County, IN | Metro: Kosciusko 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 | $820 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,030 | $190,861 | 0.54% | F |
| 3BR | $1,250 | $254,555 | 0.49% | F |
| 4BR | $1,410 | $282,862 | 0.5% | F |
U.S. Census Bureau data (2024)
The ZIP code 46504, located in Bourbon, Indiana, is part of Marshall County and stands out due to its unique demographic and economic characteristics. With a population of 3,500 residents, it has a relatively low rental rate at 19.0%, indicating that the majority of its inhabitants are homeowners. The median income in this area is $74,567, which is above the national average, and the median home value is $234,509, reflecting a stable housing market.
Turning to the economics of Section 8 vouchers, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $970, while the actual market rent, according to the Census ACS, is $921. This means that landlords who accept Section 8 vouchers in ZIP 46504 can expect a slight premium over the current market rates. However, given the low rental rate and higher median income, it's important to note that the demand for subsidized housing may be lower compared to other areas with higher percentages of renters.
The data signature for ZIP 46504 reads as "stable." The high median home value and moderate median income suggest that the local economy supports homeownership and has a strong foundation. Additionally, the slight difference between the FMR and the market rent indicates that the rental market is not experiencing significant volatility, further reinforcing the stability of the area. For landlords and small-portfolio investors, this ZIP code offers a predictable environment where accepting Section 8 vouchers can still be financially viable, especially if they aim to cater to the minority of renters seeking affordable options.
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.