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 | $930 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $940 | $177,041 | 0.53% | F |
| 2BR | $1,230 | $252,222 | 0.49% | F |
| 3BR | $1,490 | $312,694 | 0.48% | F |
| 4BR | $1,620 | $398,607 | 0.41% | F |
| 5BR | $1,879 | $477,052 | 0.39% | F |
U.S. Census Bureau data (2024)
ZIP 46582, located in Warsaw, IN, within the Kosciusko County, IN metro area, can serve as an effective cash-flow anchor in a Section 8 portfolio strategy. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,220, which is notably lower than the market rent of $1,577. This $357 difference between the FMR and market rent presents a significant opportunity for landlords to generate positive cash flow while participating in the Section 8 program.
The median home value in ZIP 46582 stands at $304,453, indicating a stable housing market. However, the focus on cash flow as an anchor suggests that the primary objective here is to ensure steady income rather than rapid appreciation. With a 0.2% price-cut share and N/A-day Days on Market (DOM), it's evident that the need for aggressive pricing strategies is minimal, further supporting the cash-flow anchor role.
A cash-flow anchor property is essential for any rental portfolio, especially when dealing with government programs like Section 8. These properties provide consistent, reliable income that can offset the risks associated with other investments. In ZIP 46582, the lower FMR compared to market rent ensures that landlords can cover their mortgage payments, maintenance costs, and other expenses while still turning a profit.
Additionally, the ZIP code has a 38.6% renter share, which is a substantial portion of the population relying on rental housing. This high percentage of renters indicates a strong demand for rental properties, making it easier to maintain occupancy rates. The median income of $66,738 supports the ability of tenants to pay their rents on time, reducing the risk of non-payment.
In conclusion, ZIP 46582 is best suited as a cash-flow anchor in a Section 8 portfolio due to the favorable spread between the FMR and market rent, a stable median home value, and a healthy renter share combined with adequate median income levels. Landlords should leverage these factors to ensure a solid financial foundation for their investment portfolios.
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.