Location: Muncie, IN | Metro: Muncie, 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 | $800 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $69,382 | 1.46% | A |
| 3BR | $1,280 | $86,253 | 1.48% | A |
| 4BR | $1,680 | $114,157 | 1.47% | A |
U.S. Census Bureau data (2024)
860 is the Fair Market Rent (FMR) for ZIP code 47305 in Muncie, IN, for fiscal year 2024, setting a benchmark for rental properties in the area. 801 is the actual market rent, known as the Zillow Observed Rent Index (ZORI), which indicates that the real-world rental rates are slightly below the FMR. This suggests a balanced market where landlords can charge close to the government-set standards without pricing out potential tenants. The median home value stands at 82,226, reflecting a relatively affordable housing market compared to larger metropolitan areas. 64.7% of residents are renters, highlighting a significant demand for rental properties and suggesting that there's ample opportunity for landlords to capitalize on this trend. The median income of 36,389 provides insight into the economic profile of the area, showing that it is a middle-income region where many households rely on rental assistance programs. Unfortunately, the data does not provide a specific number for days on market (DOM) or the percentage of homes that have had their prices cut, which would be useful metrics for assessing the health of the real estate market beyond rentals.
Given these figures, the rental market in Muncie, IN, appears stable and moderately attractive for landlords and small-portfolio investors. The proximity of the ZORI to the FMR, combined with a high renter share and an affordable median home value, creates a favorable environment for rental investments. However, the median income figure should be considered when evaluating the financial stability of potential tenants. It is advisable to focus on properties that align closely with the FMR to ensure they are within reach of the majority of renters.
The Section 8 program, which is designed to help low-income families afford decent housing, could be a valuable resource for landlords in this area. With the median income being 36,389, many tenants will likely qualify for Section 8 assistance, making it a viable option for securing steady, government-backed rental income. In conclusion, for those interested in the Section 8 program, Muncie, IN, offers a promising market with a strong tenant base and reasonable property values. The verdict on Section 8 for ZIP 47305 is positive, with the potential for stable returns and manageable risks.
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.