Location: White 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 | $820 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,790 |
| 5 Bedrooms | $2,076 |
| 6 Bedrooms | $2,325 |
| 7 Bedrooms | $2,511 |
| 8 Bedrooms | $2,637 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,090 | $138,244 | 0.79% | D |
| 3BR | $1,490 | $202,836 | 0.73% | D |
| 4BR | $1,790 | $232,809 | 0.77% | D |
U.S. Census Bureau data (2024)
ZIP 46985, located in Star City, IN, within the White County, IN metro area, serves as an ideal cash-flow anchor for a Section 8 portfolio strategy. The primary reason for this classification is the favorable spread between the Fair Market Rent (FMR) set by HUD and the actual market rents.
The FMR for a one-bedroom apartment in the White County, IN metro area for fiscal year 2026 is set at $1,020. This figure represents the maximum amount that a landlord can charge for a rental unit under the Section 8 program. In contrast, the current market rent for a similar unit in ZIP 46985 is approximately $913. This means that landlords participating in the Section 8 program in this ZIP code can secure higher rents compared to the market average, thus enhancing their cash flow.
Furthermore, the median home value in ZIP 46985 is $161,868. This relatively low home value suggests that property acquisition costs are also lower, making it easier for landlords to achieve positive cash flow from the outset. The lower property values also imply that maintenance and renovation costs will be lower, further improving the overall financial performance of properties in this area.
While ZIP 46985 does not present significant opportunities for appreciation, with a non-existent price-cut share and no data available on days on market (DOM), it still offers substantial benefits as part of a diversified investment strategy. With a 32.5% renter share and a median income of $59,063, there is a stable demand for rental housing, which is crucial for maintaining steady occupancy rates and predictable cash flows.
In summary, ZIP 46985 is best suited as a cash-flow anchor within a Section 8 portfolio due to the advantageous spread between HUD's FMR and local market rents, coupled with low property values that reduce initial and ongoing expenses. Landlords and small-portfolio investors should focus on leveraging these factors to maximize their financial returns while providing affordable housing options to eligible tenants.
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.