Location: Jennings 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 | $1,110 |
| 1 Bedroom | $1,140 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,280 | $183,498 | 0.7% | D |
| 3BR | $1,530 | $244,450 | 0.63% | D |
| 4BR | $1,800 | $316,398 | 0.57% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 47283, located in Westport, Indiana, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $940, while the Census ACS data indicates that the market rent is $710. This represents a difference of $230, or approximately 32.4%, where the FMR exceeds the market rent.
In this scenario, where the FMR is higher than the market rent, landlords can benefit from the yield play offered by voucher tenants. The higher FMR means that landlords can potentially receive more rent per unit than they would from open-market tenants, increasing their profitability. Specifically, a landlord could receive $940 through the Section 8 program, compared to the average market rent of $710, leading to an additional $230 per unit, which is a substantial boost to the rental income.
Westport, IN has a relatively low percentage of renters at 13.6%, indicating that homeownership is prevalent in the area. However, the median home value of $238,231 and median income of $74,028 suggest that there is a segment of the population that may find it difficult to afford homeownership, making rental properties, especially those eligible for Section 8 vouchers, attractive options.
The cost of housing voucher tenants below open-market rates is mitigated by the government subsidy, which covers the difference between the actual market rate and the FMR. In Westport, this means that landlords can still achieve a higher rent per unit than the typical market rate without overcharging the tenant, who only pays a portion of the rent based on their income. This makes the Section 8 program a valuable tool for landlords looking to maintain or increase their rental yields in a market where rents are generally lower.
Given the local context, landlords should consider the benefits of participating in the Section 8 program. Despite the lower overall rental market, the subsidy ensures a stable and predictable income stream, which can be particularly advantageous in a town with a median income of $74,028, where many residents might qualify for assistance due to the high cost of living relative to their earnings.
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.