Location: LaGrange County, 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 | $1,070 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,760 |
| 4 Bedrooms | $1,870 |
| 5 Bedrooms | $2,169 |
| 6 Bedrooms | $2,429 |
| 7 Bedrooms | $2,623 |
| 8 Bedrooms | $2,754 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,340 | $290,007 | 0.46% | F |
| 3BR | $1,760 | $342,653 | 0.51% | F |
| 4BR | $1,870 | $445,472 | 0.42% | F |
| 5BR | $2,169 | $625,704 | 0.35% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 46540, Middlebury, IN, in fiscal year 2024 is set at $1200. This figure represents the maximum amount that a landlord can charge for rent under the Section 8 program, known officially as the Housing Choice Voucher Program. It is important to note that this is not necessarily the amount you will receive; it is the payment standard that ensures affordability for tenants.
In comparison, the average rent for the area based on Census American Community Survey (ACS) data is $1,148. This indicates that the FMR is slightly above the local average, which could be beneficial for landlords participating in the Section 8 program.
The demand for rental properties in Middlebury is reflected in the 15.3% renter share of the population. This percentage suggests that a significant portion of residents rely on renting, creating a steady demand for affordable housing options.
If you are considering acquiring a property for your first Section 8 rental, the median home value in the area is approximately $369,903. This figure gives you an idea of the typical cost of purchasing a property in Middlebury, which should be factored into your investment calculations.
Before proceeding with a Section 8 rental property in ZIP 46540, it is crucial to verify that the property meets all local housing quality standards, known as Housing Quality Standards (HQS). These standards ensure that the property is safe and habitable for tenants. A thorough inspection by a housing authority representative will confirm compliance.
To summarize, the FMR of $1200 provides a guideline for setting rent under the Section 8 program, which is higher than the local average of $1,148. With a 15.3% renter share, there is a solid demand for rental properties. The median home value of $369,903 helps you estimate the cost of acquiring a property. Ensure that your property meets HQS to avoid any issues with participation in the program.
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.