Location: Fort Wayne, IN | Metro: Fort Wayne, IN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,030 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
The analysis for ZIP code 46854 in Unknown, Indiana, reveals some limitations due to incomplete data, but we can still draw some conclusions regarding the potential for Section 8 properties in this area.
The Fair Market Rent (FMR) for a two-bedroom apartment in ZIP 46854 for fiscal year 2024 is set at $1090 per month. This figure represents the annualized rental income that a landlord could expect from a Section 8 tenant in this ZIP code. However, without the median home value, it's challenging to calculate an exact cap rate for the area. The cap rate is a ratio used to measure the annual return on investment relative to the property's cost or value. In the absence of a median home value, we cannot provide a precise cap rate, but we can discuss the gross yield.
The gross yield is calculated by dividing the annual rental income by the property value. For a two-bedroom apartment renting at the FMR of $1090 per month, the annual rental income would be $13,080. Without the median home value, we cannot determine the exact gross yield, but if we assume a hypothetical property value, say $150,000 for illustrative purposes, the gross yield would be approximately 8.72%. This is derived by dividing $13,080 by $150,000.
The lack of market rent data means we cannot compare the gross yield of a market-rate rental property against the Section 8 scenario. Additionally, the unknown renter density and days on market (DOM) prevent us from making a definitive statement on which scenario is more realistic. These factors are crucial because they indicate the demand for rentals in the area and how quickly properties are leased, impacting the overall viability of rental investments.
In conclusion, while the data provided is limited, the annualized Section 8 rent for a two-bedroom unit in ZIP 46854 is $13,080. The gross yield, assuming a property value of $150,000, would be about 8.72%. To fully assess the investment potential, landlords and small-portfolio investors should seek additional local data on median home values, market rents, renter density, and days on market to make informed decisions.
Data Sources: FMR data from HUD (2027).
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.