Location: Decatur County, 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 | $1,180 |
| 1 Bedroom | $1,200 |
| 2 Bedrooms | $1,400 |
| 3 Bedrooms | $1,670 |
| 4 Bedrooms | $1,990 |
| 5 Bedrooms | $2,308 |
| 6 Bedrooms | $2,585 |
| 7 Bedrooms | $2,792 |
| 8 Bedrooms | $2,932 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,400 | $178,117 | 0.79% | D |
| 3BR | $1,670 | $262,052 | 0.64% | D |
| 4BR | $1,990 | $366,013 | 0.54% | F |
U.S. Census Bureau data (2024)
To fit ZIP 47246 (Hope, IN, Decatur County, IN metro) into a Section 8 portfolio strategy, consider it primarily as an appreciation play. Despite the lack of specific data points regarding price-cut share and days on market (DOM), the characteristics of this area suggest strong potential for property value growth.
The Federal Market Rent (FMR) for a $1,000 unit in ZIP 47246 for fiscal year 2024 is lower than the market rate, which stands at $1,109. This indicates that properties in this ZIP code are currently undervalued relative to their rental potential, making them attractive for investment with the expectation of future appreciation. The median home value in the area is $255,726, which is relatively modest compared to other regions, yet the median household income is significantly higher at $94,375. This suggests a robust local economy capable of supporting rising property values over time.
A cash-flow anchor strategy would not be optimal here due to the relatively low FMR spread. While the difference between the FMR and market rate does provide some positive cash flow, it is not substantial enough to justify focusing on this aspect alone. The primary driver should be the potential for capital appreciation rather than immediate rental income.
The 15.9% renter share indicates that a significant portion of the population owns their homes, which supports the idea of appreciation. Homeowners are generally more invested in the community's stability and growth, leading to better-maintained neighborhoods and increasing property values over time. This makes ZIP 47246 less suitable as a diversifier based solely on the renter share, but its overall economic health still contributes positively to a diversified portfolio.
In conclusion, ZIP 47246 is best suited as an appreciation play within a Section 8 portfolio strategy. The combination of a favorable FMR-market rate spread, modest median home value, and high median income supports the potential for property value increases, which can lead to substantial long-term gains for investors.
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.