Location: Marshall 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 | $830 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,320 | $177,485 | 0.74% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 46537 reveals a unique balance between yield and stability that may intrigue both landlords and small-portfolio investors. The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,060. This figure stands in stark contrast to the local market rent of $684, indicating a potential opportunity for higher rental yields if properties can be leased at the FMR rate.
However, the stability metrics present a different picture. Only 9.3% of residents are classified as renters, suggesting a primarily owner-occupied neighborhood. The median home value in the area is $155,604, while the average household income is $64,063. These numbers imply that there is a strong preference for homeownership among residents, which could lead to lower demand for rentals and potentially higher vacancy rates.
Given these figures, ZIP 46537 does not fit neatly into the high-yield/low-stability category typically associated with 'flip-style' markets. Instead, it appears to be more aligned with a steady-cashflow zone, albeit with a lower occupancy rate due to the low percentage of renters. The significant gap between the FMR and the market rent suggests that landlords might struggle to achieve high rental yields unless they can attract tenants willing to pay closer to the FMR rate, which may be challenging given the overall economic profile of the area.
To summarize, ZIP 46537 offers an interesting mix of potential yield and inherent stability challenges. The high FMR versus market rent discrepancy provides a theoretical upside, but the low percentage of renters and the modest income levels suggest a market that is more suited to those seeking stable, long-term investments rather than quick flips or high-yield speculative ventures.
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.