Location: Grant County, IN | Metro: Grant 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 | $810 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,440 | $196,163 | 0.73% | D |
| 4BR | $1,610 | $253,244 | 0.64% | D |
U.S. Census Bureau data (2024)
In ZIP code 46986, there are several potential pitfalls for landlords considering Section 8 investments. Firstly, tenant turnover can be a significant issue due to the difference between the market rent of $925 and the Fair Market Rent (FMR) of $960 for fiscal year 2026 in the metropolitan area. This gap suggests that tenants might prefer higher-paying jobs or seek better rental options, leading to frequent turnover.
Vacancy exposure is another concern. With the days on market (DOM) being listed as N/A, it's unclear how quickly properties in this area can be rented out. A longer DOM can lead to extended periods without rental income, which is particularly risky when dealing with government programs like Section 8 that have specific requirements and timelines.
Deferred maintenance is also a critical factor. Given the typical home value of $192,700 and a median income of $79,438, many homeowners and landlords may struggle to keep up with necessary repairs and maintenance. This could result in properties falling below the minimum standards required for Section 8 tenancy, forcing landlords to either make costly improvements or lose their tenants.
However, these risks must be weighed against the high concentration of renters in the area. The 6.6% renter share indicates a dense population of potential voucher holders, suggesting strong demand for affordable housing. In such scenarios, the availability of Section 8 vouchers can stabilize occupancy rates and provide a steady stream of income, even if it's subject to government regulations and payment schedules.
The verdict for ZIP 46986 is moderate risk. While the risks of tenant turnover, vacancy exposure, and deferred maintenance are present, the high renter density offers a counterbalance through consistent demand for subsidized housing. Landlords should carefully consider these factors before making an investment decision.
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.