Location: Fort Wayne, IN | Metro: Fort Wayne, 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 | $1,010 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,510 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,230 | $189,023 | 0.65% | D |
| 3BR | $1,510 | $238,344 | 0.63% | D |
| 4BR | $1,650 | $298,411 | 0.55% | F |
| 5BR | $1,914 | $372,383 | 0.51% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,140 for ZIP 46774 in New Haven, IN, for fiscal year 2024 will adequately cover the mortgage on a home priced at $245,287. To address this concern, consider the current mortgage rates. As of recent data, a typical 30-year fixed mortgage rate is around 5.5%, which would result in a monthly principal and interest payment of approximately $1,350 for a home of that price. However, this calculation does not include property taxes, insurance, and maintenance costs, which can significantly increase the total monthly cost. Therefore, while the FMR covers a substantial portion of the mortgage payment, it may not be sufficient without additional income sources.
The second objection pertains to the renter demand at 21.9%. This figure indicates that a little over one-fifth of the housing units in ZIP 46774 are rented. According to the data, the median rent in the area is $838 per month, suggesting a lower demand compared to the overall market. However, the vacancy rate stands at 9.3%, which is relatively low and implies a steady demand for rental properties. Despite the modest renter percentage, the low vacancy rate suggests that landlords can expect consistent occupancy, though they may need to adjust their expectations regarding rental prices.
The final concern revolves around whether Housing Choice Vouchers will keep pace with the market rents, currently averaging $999 per month. In ZIP 46774, the average voucher amount is $1,014, slightly exceeding the market rent. This means that voucher holders could potentially afford to pay the full market rent, providing some security for landlords. However, the effectiveness of this depends on the availability and utilization of vouchers, which can fluctuate. There is no guarantee that voucher amounts will continue to match or exceed market rents, but the current data shows a favorable alignment.
In summary, while the FMR of $1,140 may not fully cover the mortgage on a $245,287 home, it provides a solid foundation. The 21.9% renter demand, coupled with a low vacancy rate, supports the idea that there is enough tenant interest to maintain steady occupancy. Lastly, Housing Choice Vouchers currently offer a slight advantage over market rents, but long-term stability cannot be guaranteed without further data on future voucher allocations and adjustments.
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.