Location: Fulton County, IN | Metro: Cass 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 | $980 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,590 |
| 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 | $1,590 | $219,095 | 0.73% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 46988 reveals a market that falls between high-yield/low-stability and steady-cashflow zones, leaning slightly towards the latter. The primary indicator of this classification is the Federal Market Rent (FMR) for the area, which stands at $1,030 for the fiscal year 2026. This figure represents the expected rental price for a moderate-quality dwelling in the metropolitan area, suggesting a relatively strong demand for rental properties.
In contrast, the market rent is lower at $942, indicating that while there is demand, it is not as robust as suggested by the FMR. This discrepancy points to a moderate level of yield potential rather than a high one. Additionally, the median home value of $208,237 suggests a middle-tier housing market, where flipping properties could be less profitable due to higher acquisition costs compared to areas with lower home values.
Regarding stability, the data shows that 40.5% of residents are renters, which is a significant portion but not excessively high. A higher percentage of renters typically correlates with lower stability, as it can indicate a transient population. However, the average daily days on market (DOM) data is missing, which would have helped gauge how quickly homes are sold or rented. The median household income of $44,792 provides some insight into the economic stability of the area; it suggests that residents have a moderate ability to pay rent, contributing to a stable rental market.
Based on these figures, ZIP 46988 is best characterized as a steady-cashflow zone with moderate yield potential. The strong FMR indicates that rental income can be reasonably predictable and stable, while the lower market rent and median home value suggest that while there is room for profit, it is not as high as in areas with greater price discrepancies. The moderate renter population and income levels support the conclusion that this market offers a balanced approach, suitable for investors seeking consistent returns without the risks associated with highly volatile markets.
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.