Location: Carroll County, IN | Metro: Lafayette-West Lafayette, 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 | $810 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,120 | $176,305 | 0.64% | D |
| 3BR | $1,350 | $241,487 | 0.56% | F |
| 4BR | $1,800 | $328,400 | 0.55% | F |
| 5BR | $2,088 | $328,647 | 0.64% | D |
U.S. Census Bureau data (2024)
The Section 8 program's impact in ZIP code 46923, specifically in Delphi, Indiana, is centered around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $970, while the Census ACS data indicates that the market rent stands at $947. This creates a gap of $23, representing approximately 2.4% difference.
Given that the FMR exceeds the market rent, landlords and small-portfolio investors can leverage this situation to achieve higher yields. Voucher tenants provide a guaranteed income stream that is pegged to the FMR rather than the fluctuating market rates. By accepting Section 8 vouchers, landlords can ensure they receive the higher FMR rate of $970 per month, which is above the current market rate.
In Delphi, where 19.8% of residents are renters and the median home value is $227,449, the median income of $63,553 suggests that many households rely on financial assistance to afford housing. The higher FMR compared to the market rent means that landlords can benefit from the additional funding provided by the government through the voucher system, without having to significantly increase their rental rates beyond what is affordable for local residents.
Moreover, the voucher system reduces the risk of vacancy and delinquency since the payment is guaranteed by the government up to a certain limit. This stability is particularly valuable in a market where the median income is relatively low, and the cost of living might be a challenge for some families. Landlords who participate in the Section 8 program can expect a steady stream of income that is slightly above the average market rent, making it an attractive option for maximizing returns on investment properties in Delphi, IN.
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.