Location: DeKalb County, IN | Metro: DeKalb 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 | $760 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $143,550 | 0.7% | D |
| 3BR | $1,260 | $218,888 | 0.58% | F |
| 4BR | $1,340 | $244,800 | 0.55% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 46721, located in Butler, IN, within the DeKalb County, IN metro area, does not favor landlords. The Fair Market Rent (FMR) set at $960 for the fiscal year 2026 contrasts sharply with the actual market rent reported at $804 according to Census ACS data. This discrepancy means that landlords might struggle to cover costs and maintain profitability at the current market rates.
Regarding property acquisition, the median home value stands at $203,450. However, without specific data on the number of days on market (DOM) and the percentage of homes requiring price cuts, it's challenging to assess affordability comprehensively. These metrics are crucial for understanding how quickly properties sell and whether they often require reductions to attract buyers.
Tenant demand is modest. With a total population of 4,739, only 16.6% are renters. This relatively low share suggests limited interest among residents to lease rather than own their homes, potentially leading to a smaller pool of prospective tenants.
Verdict: ZIP 46721 presents a challenging environment for landlords and small-portfolio investors due to the unfavorable rent-to-cost ratio indicated by the disparity between FMR and actual market rents. Although the median home value is reasonable, the lack of detailed sales metrics makes it difficult to gauge overall acquisition affordability. Furthermore, the limited tenant demand, represented by the low renter share of the population, could pose difficulties in finding and retaining tenants. Therefore, while not impossible, investing in rental properties here requires careful consideration and strategic planning to overcome these hurdles.
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.