Location: Wayne County, IN | Metro: Franklin County, IN HUD Metro FMR Area
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 | $760 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,370 |
| 5 Bedrooms | $1,589 |
| 6 Bedrooms | $1,780 |
| 7 Bedrooms | $1,922 |
| 8 Bedrooms | $2,018 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,020 | $167,796 | 0.61% | D |
| 3BR | $1,330 | $247,221 | 0.54% | F |
| 4BR | $1,370 | $273,954 | 0.5% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 47353 in Liberty, Indiana, provides valuable insights into potential investment opportunities. Based on the Fair Market Rent (FMR) for a two-bedroom apartment at $950 per month for fiscal year 2024, the annualized rental income would be $11,400. Using the median home value of $189,798, the implied gross yield for this scenario is approximately 6.01%. This calculation is derived by dividing the annual rental income by the property value.
Alternatively, using the market rent figure of $731 per month from the Census American Community Survey (ACS), the annualized rental income drops to $8,772. The implied gross yield in this case is significantly lower at about 4.63%. This is calculated similarly by dividing the annual rental income by the median home value.
The gross yield comparison clearly favors the FMR-based scenario over the market rent scenario. However, the decision on which scenario is more realistic hinges on several factors. In ZIP 47353, the renter density stands at 21.9%, indicating that a relatively small portion of the population rents their homes. This suggests that landlords might face competition primarily from homeowners rather than other rental properties, potentially affecting their ability to command higher rents.
Furthermore, the N/A-day Days on Market (DOM) data implies that there might be limited turnover in rental properties, making it difficult to secure tenants willing to pay the FMR. Given these considerations, while the FMR-based scenario offers a more attractive gross yield, the market rent scenario appears more realistic due to the low renter density and uncertain market conditions.
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.