Location: Noble County, IN | Metro: LaGrange 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 | $850 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,120 | $372,920 | 0.3% | F |
| 3BR | $1,330 | $306,021 | 0.43% | F |
| 4BR | $1,490 | $416,747 | 0.36% | F |
| 5BR | $1,728 | $613,300 | 0.28% | F |
U.S. Census Bureau data (2024)
Topeka, IN, ZIP 46571 is characterized by a modest-sized community with a population of 6,315 residents. Only 17.4% of the inhabitants are renters, indicating a predominantly owner-occupied area. The median household income stands at $85,500, reflecting a middle-class neighborhood where residents have sufficient financial stability. The median home value in the area is $406,039, suggesting a moderate cost of living and a reasonable level of property investment.
The rental market dynamics in ZIP 46571 reveal an interesting opportunity for Section 8 investors. The Fair Market Rent (FMR) for the metro area for fiscal year 2026 is set at $1,050, which is notably higher than the current market rent of $920 based on Census ACS data. This gap between the FMR and the market rent presents a potential for hands-off operators who can leverage the higher FMR rates to secure steady cash flows without needing to actively manage properties or engage in significant renovations.
However, for hands-on investors looking to add value, ZIP 46571 also offers possibilities. Given the lower market rent compared to the FMR, there is room for improving property conditions and amenities, potentially allowing for increased rents that still fall under the FMR threshold. This could lead to better returns and a more competitive position in the local rental market.
In summary, ZIP 46571 in Topeka, IN, is a middle-income neighborhood with a small rental market segment. For hands-off investors, the high FMR relative to market rents makes it a viable option. Meanwhile, hands-on investors might find opportunities to enhance property values and rents within the FMR guidelines, making it suitable for both types of Section 8 investors.
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.