Location: Starke County, IN | Metro: Marshall 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 | $900 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,980 |
| 5 Bedrooms | $2,297 |
| 6 Bedrooms | $2,573 |
| 7 Bedrooms | $2,779 |
| 8 Bedrooms | $2,918 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,250 | $214,447 | 0.58% | F |
| 3BR | $1,500 | $285,012 | 0.53% | F |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 properties in ZIP code 46531 in Grovertown, IN, are significant and must be carefully considered. Firstly, the tenant turnover rate could pose a challenge. The market rent is not available, but the Fair Market Rent (FMR) for the area is set at $1,380 per month for fiscal year 2026, which indicates the minimum rental amount that can be charged under the program. This figure is crucial because it reflects the level of income required to sustain housing costs, which may lead to higher turnover if tenants struggle to meet these financial obligations.
Vacancy exposure is another critical risk factor. The Days on Market (DOM) for the area is not specified, which makes it difficult to predict how quickly you might fill vacancies. However, the typical home value in Grovertown is around $263,225, and the median income is approximately $57,786. These figures suggest that the cost of living relative to income levels could result in prolonged vacancy periods if tenants cannot afford the rent, thereby increasing the risk of vacancy exposure.
Deferred maintenance is also a concern. With a typical home value of $263,225 and a median income of $57,786, landlords should expect that some tenants may not prioritize property upkeep, leading to potential maintenance issues over time. This situation requires vigilant management and possibly setting aside additional funds for repairs and maintenance.
Despite these risks, there is a high concentration of renters in Grovertown, with 4.4% of the population being renters. High renter density often correlates with increased demand for Section 8 vouchers, which can provide a steady stream of qualified tenants. This demand helps mitigate the risks associated with tenant turnover and vacancy exposure, as landlords can rely on a pool of applicants who have been vetted through the voucher system.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP code 46531 in Grovertown, IN, is moderate. While there are significant challenges related to tenant turnover, vacancy exposure, and deferred maintenance, the high renter density offers a buffer against these risks. Careful property selection and proactive management strategies are essential to navigate these risks effectively.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.