Section 8 Fair Market Rent (FMR) for ZIP 46761 - 2027

Location: Steuben County, IN | Metro: LaGrange County, IN

Investment Score for ZIP 46761

F
Monthly Rent (2BR)
$1,010
Median Price (2BR)
$241,599
1% Rule
0.42%
Annual Yield
5.02%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$770
1 Bedroom$780
2 Bedrooms$1,010
3 Bedrooms$1,210
4 Bedrooms$1,340
5 Bedrooms$1,554
6 Bedrooms$1,740
7 Bedrooms$1,879
8 Bedrooms$1,973

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
1BR $780 $275,826 0.28% F
2BR $1,010 $241,599 0.42% F
3BR $1,210 $286,502 0.42% F
4BR $1,340 $364,301 0.37% F
5BR $1,554 $564,930 0.28% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
12,032
Median Household Income
$71,430
Housing Units
4,488
Renter Percentage
18.8%
Occupancy Rate
87.4%
Renter Occupied
737

18.8% of Lagrange, IN's residents are renters, indicating a modest demand for rental properties in ZIP 46761. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $960, which represents the maximum amount Section 8 vouchers can cover for housing costs. In contrast, the Census ACS reports a market rent of $779, suggesting that there is potential for landlords to slightly increase rents without exceeding the voucher limits. However, the median home value stands at $293,048, which is significantly higher than typical rental values, making it an attractive location for investment in single-family homes or small multi-unit properties. The median income of $71,430 provides insight into the financial capability of local residents, though it should be noted that this figure does not necessarily reflect the income level of all Section 8 participants. Despite the lack of available data on days on market (DOM), the price-cut share is only 0.2%, implying that once listed, properties generally sell at or near their asking price. This low price-cut share suggests a stable real estate market with little need for aggressive pricing strategies. Given these figures, landlords and small-portfolio investors in Lagrange, IN can expect a balanced market where rental income is likely to remain steady and property values are unlikely to fluctuate dramatically.

A final consideration for Section 8 landlords is the alignment between the FMR and the current market rents, which leaves room for profit margins while still being accessible to voucher holders. Therefore, the verdict on Section 8 participation in ZIP 46761 is positive, offering a reliable source of tenants and predictable cash flows.

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.