Location: Indianapolis-Carmel, IN | Metro: Columbus, IN MSA
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 | $1,120 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,410 |
| 3 Bedrooms | $1,760 |
| 4 Bedrooms | $2,120 |
| 5 Bedrooms | $2,459 |
| 6 Bedrooms | $2,754 |
| 7 Bedrooms | $2,974 |
| 8 Bedrooms | $3,123 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,410 | $181,509 | 0.78% | D |
| 3BR | $1,760 | $289,681 | 0.61% | D |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP 47234, Waldron, IN, is defined by the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 47234 in fiscal year 2024 is $1090, while the current market rent stands at $1,134 per month. This represents a gap of $44, or approximately 4%, where the market rent exceeds the FMR.
This situation presents a challenge for landlords and small-portfolio investors. Since the FMR is lower than the market rent, voucher tenants may not cover the full cost of renting below open-market rates. The median home value in Waldron is $239,531, with a median income of $101,708, indicating that a significant portion of the population may rely on housing vouchers to afford living spaces.
The 8.9% of renters in the area further underscores the reliance on rental properties. However, the elevated vacancy rate of 9.5% and higher unemployment rate of 9.1% suggest that there is a risk associated with tenant stability and financial reliability. Therefore, landlords must be cautious and implement rigorous tenant screening processes to mitigate these risks.
In conclusion, the investment opportunity in ZIP 47234 is mixed. While the market rent slightly exceeds the FMR, the overall environment requires active management and strategic planning to ensure profitability and stability. The best strategy involves deep tenant screening, proactive delinquency response, and a conservative approach to capital expenditures.
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.