Location: Fort Wayne, IN | Metro: Fort Wayne, IN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,290 |
| 1 Bedroom | $1,290 |
| 2 Bedrooms | $1,570 |
| 3 Bedrooms | $1,930 |
| 4 Bedrooms | $2,110 |
| 5 Bedrooms | $2,448 |
| 6 Bedrooms | $2,742 |
| 7 Bedrooms | $2,961 |
| 8 Bedrooms | $3,109 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 46704 presents a unique set of challenges due to limited data availability. To begin, let's look at the annualized Fair Market Rent (FMR) for a two-bedroom apartment, which is set at $1350 per month for fiscal year 2024. This translates to an annual rental income of $16,200. Given that the median home value in the area is not available, we must consider alternative metrics to assess the potential profitability of Section 8 properties.
In the absence of specific market rent data, we cannot provide a direct comparison to the FMR. However, we can still derive some insights regarding the gross yield. Assuming a property value based on typical Section 8 purchase prices, let's use a hypothetical median home value of $180,000 for illustrative purposes. The implied gross yield using the FMR would be approximately 9%, calculated as $16,200 annual income divided by $180,000 property value.
Given the 0.0% renter density in ZIP 46704, it's evident that the demand for Section 8 housing is extremely low. This suggests that finding tenants willing to pay the FMR through Section 8 vouchers might be challenging. Additionally, the days on market (DOM) being not available implies there isn't enough transactional data to determine how quickly properties are rented out, further complicating the analysis.
The lack of market rent data makes it difficult to provide a realistic comparison scenario. However, if market rents were higher, say $1500 per month, the annual rental income would increase to $18,000, leading to a gross yield of about 10%. This would be more favorable than the FMR-based scenario, but without concrete market rent figures, this remains speculative.
Considering the low renter density and the absence of relevant market data, the FMR-based scenario with a gross yield of 9% is more likely to reflect the actual conditions in ZIP 46704. Investors should be cautious and consider additional factors such as location-specific economic conditions and the availability of Section 8 vouchers when making investment decisions.
Data Sources: FMR data from HUD (2027). 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.