Location: Randolph County, 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 | $850 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,120 | $131,309 | 0.85% | C |
| 3BR | $1,430 | $197,999 | 0.72% | D |
| 4BR | $1,700 | $277,304 | 0.61% | D |
U.S. Census Bureau data (2024)
To address concerns about investing in ZIP 47320 (Albany, IN), let's examine the key issues raised by skeptical landlords and small-portfolio investors.
Will FMR $860 (zip FY 2024) cover the mortgage on a $189,332 home?
The Fair Market Rent (FMR) for ZIP 47320 is set at $860 for FY 2024. To determine if this will cover the mortgage on a home valued at $189,332, we must consider current mortgage rates. With an average 30-year fixed mortgage rate around 6%, a 20% down payment would result in a monthly principal and interest (P&I) payment of approximately $975. This means the FMR alone does not cover the mortgage payment. However, landlords can also factor in property taxes, insurance, and other income streams to achieve positive cash flow.
Is there enough renter demand at 14.8%?
The rental demand in ZIP 47320 stands at 14.8%. While this percentage is relatively low, it still indicates a viable market for Section 8 rentals. The demand reflects a portion of the population seeking rental housing, which can be a stable source of tenants for Section 8 properties. Landlords should conduct further research into local rental vacancy rates and the supply of available rental units to gauge the true demand landscape.
Will vouchers keep pace with $667 market rents?
The market rent for a three-bedroom unit in ZIP 47320 is currently $667. The FMR is intended to reflect the average market rent but does not always adjust in lockstep. Voucher holders may face challenges in finding suitable homes if the voucher amount lags behind market rents. However, HUD periodically reviews and adjusts FMRs to ensure they align with market conditions. Investors should monitor these adjustments and be prepared to adjust their pricing strategies accordingly.
In conclusion, while ZIP 47320 presents some challenges, it remains a viable market for Section 8 investments. Careful consideration of mortgage payments, rental demand, and FMR adjustments can help investors make informed decisions.
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.