Section 8 Fair Market Rent (FMR) for ZIP 46940 - 2027

Investment Score for ZIP 46940

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Skeptical investors considering real estate investments in ZIP code 46940, La Fontaine, Indiana, often raise several key concerns. Let's address them with the available data.

• Will FMR $1,090 (metro FY 2026) cover the mortgage on a $204,516 home? The Fair Market Rent (FMR) of $1,090 per month for ZIP 46940 is a critical figure for evaluating rental income potential. However, it does not directly translate into mortgage coverage. To determine if the FMR can cover the mortgage, one must consider the prevailing interest rates and loan terms. Assuming a 30-year fixed-rate mortgage at an average rate of 5%, the monthly payment on a $204,516 home would be approximately $1,100. This calculation shows that the FMR is nearly sufficient to cover the mortgage, but it leaves little room for unexpected expenses or profit margins. Investors should also factor in property taxes, insurance, and maintenance costs.
• Is there enough renter demand at 17.4%? The rental vacancy rate of 17.4% might seem high, suggesting low demand. However, this percentage needs to be contextualized. A higher vacancy rate can indicate either a lack of demand or an oversupply of rental units. In ZIP 46940, the demand for rental properties could still be robust despite the high vacancy rate. For instance, if many existing rentals are priced above the FMR, potential tenants might be looking for more affordable options. The data does not provide insights into the reasons behind the vacancy rate or the demographic makeup of the area, which are crucial for understanding the true demand landscape.
• Will vouchers keep pace with $932 market rents? The question of whether housing vouchers will match the market rents of $932 is pertinent, especially for those targeting lower-income renters. While the data does not specify the exact amount of housing vouchers available in ZIP 46940, historically, voucher amounts have tended to lag behind market rents. If the voucher amount is below $932, landlords might need to adjust their pricing strategies or seek additional sources of income to make up for the shortfall. It's important to monitor local housing authority announcements and trends to stay informed on any changes to voucher amounts.

The analysis of these points reveals both opportunities and challenges in investing in ZIP 46940. The data suggests that while rental income potential is close to covering mortgage payments, investors must carefully manage costs and possibly adjust their expectations for profitability. Additionally, the high vacancy rate requires further investigation into local market dynamics before drawing definitive conclusions about tenant demand. Lastly, reliance on housing vouchers as a source of rental income necessitates vigilance regarding the adequacy of these subsidies relative to market rents.

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.