Location: Noble County, IN | Metro: Elkhart-Goshen, IN MSA
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 | $880 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,080 | $176,766 | 0.61% | D |
| 3BR | $1,400 | $239,690 | 0.58% | F |
| 4BR | $1,800 | $296,804 | 0.61% | D |
| 5BR | $2,088 | $504,607 | 0.41% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 46767, Ligonier, Indiana, is set at $1010 per month for fiscal year 2024. This figure represents the payment standard for Section 8 housing vouchers, which is the amount that the government will pay towards rent on behalf of eligible tenants. It's important to note that this is not the rent you would charge your tenant; it's the maximum amount the government will contribute.
In comparison, the average monthly rent reported by the U.S. Census Bureau's American Community Survey (ACS) for the same area is $866. This suggests that the FMR is slightly higher than the typical market rent, which can be beneficial for landlords participating in the Section 8 program. The difference between the FMR and the Census-reported rent indicates that landlords could potentially receive a higher subsidy payment than the average local rent, helping to cover maintenance costs and ensuring a steady income.
The renter share in Ligonier is 26.1%, meaning nearly a quarter of the population are renters. This shows there is a reasonable demand for rental properties, including those that might participate in the Section 8 program. However, the demand should be balanced against the supply of available rentals to ensure occupancy rates remain high.
If you're considering purchasing a property to use as a Section 8 rental, the median home value in Ligonier is approximately $241,738. This figure can guide you in understanding the potential acquisition cost for a property suitable for the program. Keep in mind that the actual price could vary based on the condition, size, and location of the property.
Before finalizing your decision to enter the Section 8 market, verify that the property meets all the necessary quality standards set by the Housing Quality Standards (HQS) guidelines. These standards ensure the property is safe and habitable for tenants. Compliance with HQS is mandatory for participation in the Section 8 program, and failure to meet these requirements could result in penalties or disqualification from the program.
By participating in Section 8, you can benefit from stable rental income and a guaranteed tenant pool. However, the success of your investment depends on ensuring your property is up to code and that you understand the financial expectations and responsibilities involved.
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.