Location: Starke County, IN | Metro: Fulton 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 | $760 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $133,031 | 0.76% | D |
| 3BR | $1,320 | $213,818 | 0.62% | D |
| 4BR | $1,630 | $263,421 | 0.62% | D |
U.S. Census Bureau data (2024)
ZIP 46960, located in Monterey, IN, within the Starke County, IN metro area, serves as an ideal cash-flow anchor for a Section 8 portfolio strategy. The Family Monthly Rent (FMR) for the metro area in fiscal year 2026 is set at $960, which is significantly lower than the median home value of $159,860 in the same ZIP code. This creates a stable and predictable cash flow due to the guaranteed rental income from the Section 8 program.
The lack of specific market data such as price-cut share and days on market (DOM) suggests that the primary focus should be on the rental market dynamics rather than speculative investment in property appreciation. The FMR provides a consistent benchmark for rental income, ensuring that landlords can rely on steady cash flows without the volatility associated with fluctuating home values or speculative price increases.
With a renter share of 20.6%, the ZIP code indicates a moderate demand for rental properties, making it suitable for diversification within a larger portfolio. However, the primary appeal lies in its role as a cash-flow anchor. The median income of $45,625 aligns well with the income limits typically associated with Section 8 eligibility, ensuring a steady stream of qualified tenants who can afford the rent but still require assistance.
In conclusion, ZIP 46960 is best suited as a cash-flow anchor in a Section 8 portfolio strategy. Its alignment with the $960 FMR for fiscal year 2026 ensures reliable income, while the median home value of $159,860 offers a tangible asset base that can provide long-term stability to an investment portfolio.
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.