Location: Cass 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 | $830 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,370 |
| 5 Bedrooms | $1,589 |
| 6 Bedrooms | $1,780 |
| 7 Bedrooms | $1,922 |
| 8 Bedrooms | $2,018 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $152,166 | 0.66% | D |
| 3BR | $1,360 | $201,557 | 0.67% | D |
| 4BR | $1,370 | $260,674 | 0.53% | F |
U.S. Census Bureau data (2024)
The median income in ZIP 46994, which encompasses Walton, IN, stands at $56,563. Against this backdrop, the market rate for rent, according to the Census ACS, is $637. This suggests that the average household may find it challenging to cover their housing costs without financial strain. To put this into perspective, the household would need to dedicate approximately 12% of their annual income to paying the market rent, assuming no other significant expenses.
However, the situation becomes even more pronounced when comparing the market rate to the Fair Market Rent (FMR) set by HUD for the fiscal year 2026, which is $960. This figure represents the maximum amount landlords can charge tenants who receive rental assistance through Section 8 vouchers. The disparity between the market rate ($637) and the FMR ($960) highlights a significant affordability gap for potential voucher recipients in the area. In essence, the average household earning the median income would struggle to pay the higher FMR rate, indicating a strong reliance on rental assistance programs.
With only 18.1% of the 2,132 residents being renters, competition among landlords for tenants is relatively low. However, the presence of Section 8 voucher holders increases the demand for affordable housing units. Landlords must consider the dynamics of this competition when deciding whether to accept vouchers or opt for cash-paying tenants. Accepting vouchers ensures a steady stream of income but limits the rent to the FMR rate. Cash-paying tenants might offer higher rents but could be fewer in number due to the economic realities faced by many households in the area.
The takeaway for landlords is clear: the decision to accept Section 8 vouchers should be informed by an understanding of the local economic landscape. Given the median income and the market rate, there is a substantial portion of the population that would benefit from and likely seek out voucher-supported housing. Landlords who accept vouchers will tap into a different segment of the rental market, ensuring occupancy and stability. Those who prefer cash-paying tenants may have limited options, as the economic conditions suggest that many households would find it difficult to meet higher rental demands without assistance.
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.