Location: Miami County, IN | Metro: Kokomo, IN MSA
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 | $860 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,350 |
| 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $870 | $68,187 | 1.28% | A |
| 2BR | $1,120 | $107,019 | 1.05% | B |
| 3BR | $1,350 | $177,074 | 0.76% | D |
| 4BR | $1,550 | $251,659 | 0.62% | D |
| 5BR | $1,798 | $287,869 | 0.62% | D |
U.S. Census Bureau data (2024)
The potential pitfalls for a Section 8 landlord in ZIP 46901, Kokomo, IN, are significant. Tenant turnover is a critical issue due to the discrepancy between the market rent of $973 and the Fair Market Rent (FMR) set at $900 for fiscal year 2024. This gap can lead to higher turnover rates as tenants might struggle to afford the market rent, forcing them to seek more affordable options. High turnover not only increases administrative costs but also leaves properties vulnerable to extended vacancy periods.
Vacancy exposure is another concern, especially considering the average Days on Market (DOM) of 47 days. This period represents the time it takes to fill a vacancy, during which a landlord incurs expenses without rental income. In an environment where the market rent exceeds the FMR, finding a Section 8 tenant willing to accept the lower FMR rate can take longer than expected, exacerbating the risk of vacancy.
Deferred maintenance is a significant risk factor, given the typical home value of $160,705 and the median income of $60,495. The financial strain on residents, particularly those relying on Section 8 vouchers, may result in deferred maintenance requests, leading to potential long-term property damage and higher repair costs.
Despite these challenges, there are mitigating factors that reduce the overall risk. The renter share in ZIP 46901 is 30.0%, indicating a high concentration of renters. A large number of renters usually correlates with higher demand for Section 8 vouchers, making it easier to find qualified tenants. This demand helps to ensure a steady stream of applications, which can be beneficial when managing vacancies and turnover.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.