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 | $940 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,150 | $96,747 | 1.19% | B |
| 3BR | $1,410 | $117,346 | 1.2% | A |
| 4BR | $1,550 | $139,711 | 1.11% | B |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 46803 in Fort Wayne, IN, reveals some interesting insights into potential investment opportunities. The Fair Market Rent (FMR) for a 2-bedroom apartment in fiscal year 2024 is set at $980 annually, while the market rent, as indicated by the Zillow Observed Rent Index (ZORI), stands at $1,025 per month.
To derive the gross yield, we first need to annualize these figures. For the Section 8 scenario, the monthly rental income of $980 translates to an annual income of $11,760. Dividing this by the median home value of $108,655 gives us an implied gross yield of approximately 10.8%. On the other hand, using the market rent figure of $1,025 per month, the annual income would be $12,300. This results in an implied gross yield of about 11.3% when compared to the median home value.
Evaluating the two scenarios, the gross yield derived from market rent ($11,300 annually) is slightly higher than that from the Section 8 program ($11,760 annually). However, the choice between the two depends largely on the specifics of the property and the investor's risk tolerance. Given that 56.4% of residents in ZIP 46803 are renters, there is a significant demand for rental properties, which can be beneficial for both types of investments.
The absence of a specific Days on Market (DOM) figure makes it challenging to predict how quickly a property might be rented out under either scenario. However, the higher gross yield from market rent suggests a potentially better return on investment if the property can be occupied consistently at those rates. Nevertheless, the stability and guaranteed income from the Section 8 program, despite a slightly lower gross yield, could be more attractive to risk-averse investors.
In conclusion, while the market rent offers a marginally higher gross yield of 11.3%, the Section 8 program provides a stable 10.8% yield. The decision should consider the broader economic context, including tenant turnover rates and the reliability of rental income streams.
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.