Location: Wabash County, IN | Metro: Miami 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 | $770 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,030 | $177,079 | 0.58% | F |
| 3BR | $1,230 | $242,683 | 0.51% | F |
| 4BR | $1,390 | $266,162 | 0.52% | F |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in Section 8 properties in ZIP code 46974 in Roann, Indiana, are significant. Tenant turnover is a notable risk, as the market rent of $1,059 slightly exceeds the Fair Market Rent (FMR) of $1,050 for fiscal year 2026 in the metro area. This minor difference can lead to higher churn rates, with tenants seeking properties that offer them a better deal. Additionally, vacancy exposure is a concern due to the lack of available data on days on market (DOM), which makes it difficult to predict how quickly units might be filled. The deferred maintenance exposure is also considerable, given the typical home value of $225,079 and a median income of $61,528. Landlords must be prepared to invest in property upkeep, as residents may not have the financial means to cover such costs themselves.
However, these risks are offset by the high concentration of renters in the area. With a 16.7% renter share, there is a strong likelihood of consistent voucher demand. High renter density often translates into a steady stream of tenants who rely on government assistance to meet their housing needs, ensuring a stable occupancy rate.
In conclusion, the investment in Section 8 properties in ZIP code 46974 presents a moderate risk for a first-time landlord. While challenges exist, particularly in tenant retention and maintenance costs, the high renter share provides a solid foundation for demand stability.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.