Location: Marshall County, IN | Metro: Fulton 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 | $830 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,090 | $179,136 | 0.61% | D |
| 3BR | $1,320 | $227,455 | 0.58% | F |
| 4BR | $1,430 | $261,463 | 0.55% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP 46539, located in Mentone, IN, within the Marshall County, IN metro area, reveals several key points regarding its suitability for Section 8 real-estate investment.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for the area, set at $1,080 for fiscal year 2026, exceeds the current market rent of $964 as reported by the Census ACS. This indicates that landlords could potentially earn a higher income by participating in the Section 8 program, which sets a benchmark for rental rates above the current market average.
The second consideration is the affordability of property acquisition. With a median home value of $203,214, acquiring properties in ZIP 46539 is relatively affordable compared to other markets. However, the lack of data on days on market (DOM) and the percentage of homes requiring price cuts suggests that the local real estate market may be stable, but further investigation into specific listings would be necessary to confirm this trend.
Regarding tenant demand, ZIP 46539 has a population of 2,659, with 21.0% of residents being renters. While the renter share is not exceptionally high, it does indicate a steady demand for rental housing, which can be beneficial for landlords looking to maintain occupancy rates.
In conclusion, ZIP 46539 presents a viable opportunity for Section 8 investments due to favorable rent math, with the potential to earn above the current market rate. Property acquisition is affordable, with median home values under $203,214, though the absence of specific market dynamics data requires careful due diligence. Tenant demand is moderate, supported by a consistent 21.0% renter share. Landlords and small-portfolio investors should proceed with confidence, leveraging these insights to make informed decisions about their investments in this area.
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.