Location: Kosciusko County, IN | Metro: Kosciusko 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 | $870 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $880 | $141,893 | 0.62% | D |
| 2BR | $1,150 | $186,549 | 0.62% | D |
| 3BR | $1,400 | $251,825 | 0.56% | F |
| 4BR | $1,510 | $338,176 | 0.45% | F |
| 5BR | $1,752 | $417,677 | 0.42% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 46580, located in Warsaw, IN, within the Kosciusko County, IN metro area, reveals several key points for potential real estate investors. Firstly, regarding the rent math, it does not favorably align. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,130, whereas the actual market rent, measured by the Zillow Observed Rent Index (ZORI), stands at $958. This indicates that landlords might struggle to achieve the FMR, potentially leading to lower-than-expected rental income.
Secondly, the acquisition cost of properties in this area is relatively low. With a median home value of $247,152, purchasing homes can be considered affordable for many investors. However, the lack of data on days on market (DOM) and the low percentage of homes needing price cuts (0.2%) suggest a stable but not particularly dynamic market. Investors should expect competition and possibly slower sales cycles.
Lastly, there is a notable tenant demand. The ZIP code has a population of 21,794, with 24.1% of residents being renters. This percentage translates to over 5,250 individuals actively seeking rental housing, providing a solid base of potential tenants.
In summary, while the current market rent falls short of the FMR, the affordability of property acquisitions and the presence of a significant number of renters make ZIP 46580 an attractive investment opportunity for those willing to adjust their expectations on rental income. The low competition for listings and a stable housing market offer a secure environment for acquiring properties. However, investors must be prepared to accept slightly lower rents compared to the FMR to attract and retain tenants.
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.