Location: Starke County, IN | Metro: Michigan City-La Porte, 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 | $810 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,000 | $124,532 | 0.8% | C |
| 2BR | $1,170 | $183,692 | 0.64% | D |
| 3BR | $1,420 | $255,532 | 0.56% | F |
| 4BR | $1,540 | $330,480 | 0.47% | F |
| 5BR | $1,786 | $361,698 | 0.49% | F |
U.S. Census Bureau data (2024)
In Walkerton, Indiana, specifically ZIP code 46574, there are several risks to consider when investing in Section 8 properties. Tenant turnover is a significant concern due to the disparity between the market rent of $791 and the Fair Market Rent (FMR) for fiscal year 2024, which stands at $990. This difference can lead to tenants seeking higher-rent homes that better match their vouchers, increasing the likelihood of turnover.
Vacancy exposure is another issue, as the Days on Market (DOM) for properties in this area is not available. Without this data, it's difficult to predict how long a property might remain vacant between tenants, which can impact cash flow negatively.
The deferred maintenance risk is also notable. With an average home value of $228,371 and a median income of $76,181, many homeowners may struggle to keep up with necessary repairs and maintenance. This can affect the quality of rental units and potentially lead to higher maintenance costs for landlords.
However, these risks are balanced by the high concentration of renters in the area. The renter share is 13.0%, indicating a robust demand for rental housing and likely a strong interest in Section 8 vouchers. High renter density often translates into greater stability in finding and retaining tenants who qualify for Section 8 assistance.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.