Location: Steuben 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 | $860 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,130 | $246,784 | 0.46% | F |
| 3BR | $1,420 | $290,355 | 0.49% | F |
| 4BR | $1,480 | $363,026 | 0.41% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 46747 in Hudson, Indiana, reveals interesting insights into potential investment opportunities. Using the Federal Market Rent (FMR) for a 2-bedroom apartment at $1,060 annually and the market rent at $953, we can derive the gross yields against the median home value of $261,088.
First, let's calculate the gross yield based on the FMR. The annualized FMR for a 2BR unit is $1,060. Dividing this by the median home value gives us an implied gross yield of approximately 0.4%. This calculation is as follows:
Next, consider the market rent scenario. With an annualized market rent of $953, the implied gross yield drops even lower to about 0.37%. Here’s the math:
Given that only 10.5% of households are renters, it becomes evident that the market rent scenario is more reflective of the actual rental landscape in Hudson, Indiana. The FMR, while useful for government subsidies, does not necessarily represent the prevailing market conditions.
The N/A-day Days on Market (DOM) indicates that there might be limited data on how quickly properties are rented out, possibly due to low turnover rates or other factors affecting the local rental market. However, the lower renter density suggests that demand for rentals is relatively low, making the market rent figure more relevant for investment considerations.
In conclusion, the gross yield derived from the market rent is slightly lower than that from the FMR, reflecting a more accurate representation of the rental market in Hudson, Indiana. Landlords and small-portfolio investors should focus on the market rent figure when assessing the viability of Section 8 investments in this area.
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.