Location: Elkhart-Goshen, IN | Metro: Elkhart-Goshen, IN MSA
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 | $990 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,030 | $112,137 | 0.92% | C |
| 2BR | $1,230 | $144,888 | 0.85% | C |
| 3BR | $1,620 | $210,177 | 0.77% | D |
| 4BR | $1,720 | $249,507 | 0.69% | D |
| 5BR | $1,995 | $289,822 | 0.69% | D |
U.S. Census Bureau data (2024)
The ZIP code 46516 in Elkhart, IN, stands out due to its unique demographic and economic characteristics. With a total population of 31,871, it has a notable rental rate of 37.3%, indicating a significant portion of residents who are likely seeking affordable housing solutions. The median income in this area is $56,492, which places it below the national average but is still sufficient for a substantial number of families to qualify for assistance programs such as Section 8. The median home value of $183,049 reflects a moderate housing market, making homeownership accessible to many.
Turning to the specifics of Section 8 vouchers, the Fair Market Rent (FMR) for the ZIP code for fiscal year 2024 is set at $1,050. This is notably lower than the market rent, as measured by ZORI (Zillow Observed Rent Index), which is $1,099. This difference suggests that landlords and small-portfolio investors in ZIP 46516 can expect to see a slight premium when renting to tenants with vouchers compared to the subsidized rates. However, the gap is relatively small, meaning that the economic benefit of accepting Section 8 tenants may be modest but still present.
In summary, the data signature of ZIP 46516 reads as stable. The population size and rental rate indicate a steady demand for rental properties, while the median income and home values suggest a consistent economic environment. Landlords should consider these factors carefully when deciding to accept Section 8 tenants, weighing the benefits against the potential challenges. The slight premium over FMR can serve as an incentive, but the overall stability of the area provides a reliable foundation for investment decisions.
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.