Location: DeKalb County, 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 | $1,030 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,590 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,290 | $275,823 | 0.47% | F |
| 3BR | $1,590 | $449,190 | 0.35% | F |
| 4BR | $1,730 | $558,963 | 0.31% | F |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP 46788 in fiscal year 2024 is set at $1,180. This is significantly lower than the market rent of $1,799 reported by the Census Bureau's American Community Survey (ACS). Given this discrepancy, voucher tenants will only cashflow at the FMR rate with premium units that have above-average amenities or are in prime locations.
To derive the rent-to-price ratio, we consider the median home value in Spencerville, which is $449,658. Using the HUD FMR of $1,180, the annual rent would be $14,160. This results in a rent-to-price ratio of approximately 3.1%, calculated as follows: ($14,160 / $449,658) * 100 = 3.1%. This indicates that the rental income generated from a typical property is relatively low compared to its purchase price.
Note that the median days on market (DOM) and the percentage of properties that require price cuts are not available for Spencerville, IN. However, these metrics are crucial for understanding the dynamics between renting and buying in the area. If such data were available, it could provide insights into how quickly properties sell and whether sellers often need to reduce their asking prices.
In conclusion, the strongest angle for investors in Spencerville, IN 46788 is likely stability. While cashflow might be limited due to the disparity between FMR and market rents, the relative consistency of Section 8 payments provides a reliable source of income, making it a stable investment opportunity despite the lower rent-to-price ratio.
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.