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 | $1,170 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,430 |
| 3 Bedrooms | $1,760 |
| 4 Bedrooms | $1,920 |
| 5 Bedrooms | $2,227 |
| 6 Bedrooms | $2,494 |
| 7 Bedrooms | $2,694 |
| 8 Bedrooms | $2,829 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,430 | $236,419 | 0.6% | D |
| 3BR | $1,760 | $248,602 | 0.71% | D |
| 4BR | $1,920 | $316,320 | 0.61% | D |
| 5BR | $2,227 | $382,402 | 0.58% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 46825 in Fort Wayne, IN, reveals an interesting scenario for potential investors. To begin, we must consider the Federal Market Rent (FMR) for a two-bedroom apartment, which is set at $1210 annually for FY 2024. This figure represents the maximum amount that the government will pay towards rent under the Section 8 program.
Using this FMR, the annualized rental income for a property would be $1210 multiplied by 12 months, totaling $14,520. The median home value in the area is $254,858. To calculate the implied gross yield based on the FMR, we divide the annual rental income by the median home value. This gives us an implied gross yield of approximately 5.7%. The formula for this calculation is:
In contrast, the Zillow Observed Rental Index (ZORI) for the same ZIP code suggests a market rent of $1,392 per month. This translates into an annual rental income of $16,704. When we apply this market rent to the median home value, the implied gross yield rises to about 6.6%. The calculation here is:
Given the 40.5% renter density and a 16-day Days on Market (DOM), it is more realistic to consider the market rent scenario. A 16-day DOM indicates that properties are being rented out relatively quickly, suggesting strong demand from tenants willing to pay the market rate. This high demand makes it likely that landlords can achieve the higher market rent rather than relying solely on the lower FMR provided by the Section 8 program.
Therefore, while the FMR yields an implied gross yield of 5.7%, the more practical figure for investors considering the robust rental market in ZIP 46825 is the 6.6% implied gross yield based on market rent. This analysis provides a clear snapshot of the financial landscape for Section 8 properties in this area, allowing investors to make informed decisions.
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.