Location: Adams County, IN | Metro: Wells County, IN HUD Metro FMR Area
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 | $800 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,050 | $144,661 | 0.73% | D |
| 3BR | $1,280 | $235,298 | 0.54% | F |
| 4BR | $1,460 | $298,880 | 0.49% | F |
| 5BR | $1,694 | $374,767 | 0.45% | F |
U.S. Census Bureau data (2024)
A decision tree for evaluating whether to purchase a property in ZIP 46714 (Bluffton, IN) for Section 8 investment hinges on three key factors: Fair Market Rent (FMR), market rent comparison, and rental demand.
1) Does FMR of $960 clear debt service on a $225,112 property?
Yes: The FMR of $960 can cover the debt service on a property valued at $225,112. This means that the potential income from a Section 8 tenant is sufficient to meet the mortgage payments and other associated costs. Landlords can proceed to the next evaluation step.
No: The FMR of $960 does not cover the debt service on a property priced at $225,112. This indicates that the income from a Section 8 tenant would be insufficient to meet the financial obligations of owning such a property. Landlords should avoid purchasing properties in this ZIP code for Section 8 purposes.
2) Is market rent of $759 above, at, or below FMR?
Above: If the market rent is higher than the FMR, landlords might consider alternative non-Section 8 tenants who could pay more. However, this scenario does not apply since the market rent of $759 is below the FMR of $960.
At: Not applicable in this case.
Below: Since the market rent of $759 is below the FMR of $960, landlords will find that Section 8 rents are higher than what they could get from a typical market tenant. This makes Section 8 a more attractive option for landlords looking to ensure stable and predictable rental income.
3) Are 29.8% renters + N/A-day days on market enough demand?
It Depends: With 29.8% of the population being renters, there is a moderate level of demand for rental properties. However, the lack of data regarding the average days on market (DOM) makes it challenging to gauge how quickly properties are leased. If the DOM is low, indicating quick leasing, then the demand is likely sufficient. Conversely, if DOM is high, landlords may face difficulties in finding tenants, even with the higher Section 8 rents.
To summarize, if the FMR of $960 covers the debt service on a $225,112 property and the market rent of $759 is below the FMR, landlords should consider the rental demand. Given the moderate renter percentage but the absence of DOM data, the decision ultimately depends on further investigation into the leasing dynamics of Bluffton, IN.
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.