Location: Franklin County, IN | Metro: Franklin County, IN HUD Metro FMR Area
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 | $870 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,180 | $191,162 | 0.62% | D |
| 3BR | $1,550 | $280,915 | 0.55% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 47030, Metamora, IN, provides insights into potential investment returns. The Fair Market Rent (FMR) for a two-bedroom apartment in fiscal year 2024 is set at $990 per month. To annualize this figure, we multiply it by 12, resulting in an annual rental income of $11,880.
Using the median home value of $262,817 as a proxy for the cost of a two-bedroom property, the implied gross yield can be calculated. This is done by dividing the annual rental income by the median home value. For the FMR scenario, the gross yield is approximately 4.5% ($11,880 / $262,817).
The market rent for the area is listed as N/A, indicating that there is insufficient data to determine a precise market rate. However, for the sake of comparison, if we assume the market rent is higher than the FMR, the gross yield would also be higher. Given the lack of specific market rent figures, we cannot provide an exact gross yield for this scenario.
The renter density in Metamora, IN, is relatively low at 7.3%. This suggests that the demand for rental properties, including those participating in the Section 8 program, is limited. A low density of renters might indicate a less competitive rental market, which could support the use of FMR as a reasonable estimate for rental income.
The Days on Market (DOM) statistic is also listed as N/A, meaning there is no data available regarding how quickly rental properties are typically leased in this area. Without this information, it's difficult to predict the vacancy rates and, consequently, the consistency of rental income.
In conclusion, the FMR-based gross yield of 4.5% offers a concrete benchmark for evaluating potential Section 8 investments in ZIP 47030. While the market rent scenario likely offers a better gross yield, the absence of specific figures makes it impossible to quantify. Landlords and small-portfolio investors should consider the low renter density when deciding whether to participate in the Section 8 program, as it may affect the property's occupancy and overall profitability.
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.