Location: Wayne County, IN | Metro: Randolph County, IN
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 | $770 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $149,904 | 0.67% | D |
| 3BR | $1,290 | $235,998 | 0.55% | F |
| 4BR | $1,340 | $265,840 | 0.5% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 47341, specifically Fountain City, IN, reveals a significant gap between the Fair Market Rent (FMR) set at $960 per month for the fiscal year 2026 and the actual market rent of $673, based on Census ACS data. This gap amounts to $287 per month, representing approximately a 42.7% difference between the two figures.
Given that the FMR exceeds the market rent, landlords and small-portfolio investors should view this as a yield play. Voucher tenants provide a guaranteed income stream that aligns with the higher FMR rate, ensuring a steady cash flow and potentially higher returns compared to the open-market rental rates. The discrepancy means that landlords can charge closer to the FMR without the risk of losing tenants to the competitive market, as voucher holders are subsidized to pay the higher amount.
In Fountain City, where 23.0% of residents are renters and the median home value stands at $222,837, the median income is $81,750. These figures suggest that while homeownership is more prevalent, there remains a notable segment of the population reliant on rental housing. The Section 8 program can be particularly beneficial in such a setting, as it supports affordable housing for lower-income families while offering a predictable rental income for property owners.
However, it's important to consider the administrative aspects of managing Section 8 properties. Landlords must adhere to HUD regulations and undergo regular inspections, which can add to the operational costs. Despite these considerations, the financial benefit of receiving rents at the FMR level—$960 instead of the market rate of $673—can offset these expenses and contribute to a positive investment strategy.
To summarize, the $287 monthly difference, or 42.7%, between the FMR and market rent makes ZIP 47341 a favorable area for landlords who can leverage the Section 8 program to secure higher yields. This opportunity is especially compelling given the local context of Fountain City, IN, where the need for affordable housing coexists with a stable median income and home values.
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.