Location: Wabash County, IN | Metro: Wabash County, IN
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 | $900 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,200 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,200 | $146,082 | 0.82% | C |
| 3BR | $1,430 | $237,596 | 0.6% | D |
| 4BR | $1,600 | $246,787 | 0.65% | D |
U.S. Census Bureau data (2024)
Investors considering Lagro, IN (ZIP 46941), might raise several valid concerns regarding the feasibility of renting properties under the Section 8 program. Here are some of the most pressing questions and the data to address them.
Objection 1: Will the Fair Market Rent (FMR) of $1,050 for the metro area in fiscal year 2026 cover the mortgage on a $206,498 home?
The answer is likely no. A home priced at $206,498 would typically have a monthly mortgage payment that exceeds the FMR. For instance, a 30-year fixed-rate mortgage at an average interest rate of 5% would result in a monthly payment of approximately $1,100 before taxes and insurance. This calculation suggests that the FMR alone is insufficient to cover the mortgage payments, potentially leaving landlords with a shortfall.
Objection 2: Is there enough renter demand at 12.9%?
The 12.9% rental rate indicates that just over one-tenth of the population in Lagro, IN, rents their homes. This figure can be seen as relatively low compared to national averages, which hover around 35%. However, it's important to note that the rental rate does not directly correlate with the demand for affordable housing options. The actual number of renters seeking Section 8 assistance is a critical factor, but the data provided does not offer insight into this specific demand. Therefore, while the rental rate is modest, the need for subsidized housing may still be significant.
Objection 3: Will vouchers keep pace with $946 market rents?
The current market rent of $946 is below the FMR of $1,050, suggesting that vouchers should cover the cost adequately. However, the long-term sustainability depends on whether the voucher amounts will adjust with inflation and changes in market conditions. The data does not provide a projection for future voucher amounts, so it's uncertain if they will continue to match or exceed the market rents in coming years. Landlords should monitor local housing authority updates to ensure ongoing alignment between voucher values and market rents.
In conclusion, while the data raises some concerns, particularly regarding the coverage of mortgage payments and the long-term adjustment of voucher amounts, the lower market rent compared to the FMR provides a margin of safety for now. The modest rental rate does not necessarily indicate low demand for subsidized housing, but further investigation into the local rental market dynamics would be advisable.
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.