Location: Elkhart-Goshen, 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 | $990 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,230 | $216,991 | 0.57% | F |
| 3BR | $1,620 | $303,723 | 0.53% | F |
| 4BR | $1,720 | $349,541 | 0.49% | F |
U.S. Census Bureau data (2024)
The ZIP code 46553, located in New Paris, Indiana, presents a unique opportunity for real-estate investors when considering both yield and stability. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $1040, slightly below the market rent of $1045. This suggests that properties in this area can be rented out close to the FMR, providing a modest yield without straying far from government guidelines.
The median home value in ZIP 46553 is $304,796, which indicates a relatively stable housing market. However, the rental market shows some volatility with only 12.1% of residents being renters. This low percentage implies a smaller pool of potential tenants, which could affect the ease of leasing properties and the overall cash flow stability. Additionally, the lack of data on the average days on market (DOM) for rentals further underscores the uncertainty regarding how quickly units might be leased in this area.
The median household income in the area is $89,417, which is a positive indicator for stability. Higher incomes generally correlate with lower default rates on rent payments and a greater ability among tenants to maintain their rental obligations. This figure supports the idea that tenants in this area have a solid financial foundation, enhancing the stability aspect of investing here.
To classify the market in ZIP 46553, it falls into a category that is neither purely high-yield nor a steady-cashflow zone but rather a balanced scenario. The yield is decent, given the proximity of the FMR to the market rent, but the stability is somewhat compromised due to the low percentage of renters and the limited data on rental market performance. Investors looking to enter this market should expect moderate returns and prepare for potentially slower lease-up times.
A summary of the key figures:
Given these metrics, the market in ZIP 46553 is best described as a moderately stable investment opportunity with reasonable yields. It does not offer the high-risk, high-reward characteristics of a flip-style market but also lacks the robust tenant pool indicative of a steady-cashflow zone.
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.