Location: Blackford 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 | $800 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,290 |
| 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 | $108,411 | 0.93% | C |
| 3BR | $1,290 | $181,538 | 0.71% | D |
| 4BR | $1,680 | $218,411 | 0.77% | D |
U.S. Census Bureau data (2024)
The ZIP code 47338, located in Eaton, Indiana, presents a unique opportunity for real-estate investors, particularly those interested in Section 8 properties. To classify this area, we need to analyze both the yield potential and market stability.
Yield Analysis: The Fair Market Rent (FMR) for ZIP 47338 in fiscal year 2024 is set at $860. This figure is notably higher than the local market rent of $688, indicating that Section 8 properties can command a premium over market rates. Furthermore, the average home value in the area stands at $166,750, which suggests a relatively affordable entry point for investors looking to purchase rental properties. Given the disparity between FMR and market rent, along with the reasonable home values, the yield potential in this ZIP code is strong, favoring a high-yield investment strategy.
Stability Analysis: Market stability in ZIP 47338 is somewhat mixed. The percentage of renters is 18.1%, which is relatively low, indicating a predominantly owner-occupied community. However, this also means there is limited demand from traditional renters, potentially affecting the overall stability of the rental market. The median household income in the area is $68,239, which provides some assurance regarding the financial health of potential tenants. Unfortunately, the days on market (DOM) data is not available, which would have helped in assessing how quickly properties are rented out and the competition level in the rental market.
Based on these figures, ZIP 47338 leans towards being a high-yield/medium-stability market. While the rental income potential is strong due to the favorable FMR compared to market rent, the relatively low renter population introduces an element of unpredictability. Investors should consider the strong rental income potential but also be prepared for a market that may require more attention to tenant selection and property management practices to ensure steady cash flow.
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.