Section 8 Fair Market Rent (FMR) for ZIP 46538 - 2027

Location: Kosciusko County, IN | Metro: Kosciusko County, IN

Investment Score for ZIP 46538

F
Monthly Rent (2BR)
$1,140
Median Price (2BR)
$293,834
1% Rule
0.39%
Annual Yield
4.66%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$870
1 Bedroom$870
2 Bedrooms$1,140
3 Bedrooms$1,380
4 Bedrooms$1,500
5 Bedrooms$1,740
6 Bedrooms$1,949
7 Bedrooms$2,105
8 Bedrooms$2,210

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $1,140 $293,834 0.39% F
3BR $1,380 $364,685 0.38% F
4BR $1,500 $539,185 0.28% F
5BR $1,740 $689,936 0.25% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
4,291
Median Household Income
$89,803
Housing Units
2,675
Renter Percentage
15.1%
Occupancy Rate
61.9%
Renter Occupied
251

The ZIP code 46538, located in Leesburg, Indiana, has a population of 4,291 residents. Among them, 15.1% are renters, indicating that this is primarily a homeowner-dominated area. The median household income stands at $89,803, which is relatively high compared to national averages. However, the market rent for the area is $1,045 per month, representing approximately 12% of the median household income. This suggests that while there is some demand for rental properties, it is not particularly deep.

Comparing the market rent to the Fair Market Rent (FMR) set at $1,130 for the fiscal year 2026 in the metro area, we see that the market rent in Leesburg is slightly below the FMR. This indicates that landlords in Leesburg might be able to offer competitive rents without exceeding the voucher limits.

A landlord in this ZIP code can expect tenants who are likely to have stable employment given the higher median income. These tenants will probably be using Section 8 vouchers to cover part or all of their rent. The voucher demand is moderate due to the lower percentage of renters in the area. Tenants will be individuals or families whose incomes are below the area median income (AMI), typically earning less than 50% of the AMI, which would be around $44,901 or less in Leesburg.

In conclusion, while ZIP 46538 is not heavily populated with renters, there is still a viable tenant pool for landlords willing to work with Section 8 vouchers. The combination of a slightly below average market rent and a higher median income makes it a reasonable location for investment, with expectations of tenants needing financial assistance through housing vouchers.

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.