Section 8 Fair Market Rent (FMR) for ZIP 47354 - 2027
Location: Wayne County, IN | Metro: Muncie, IN MSA
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $1,020 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,360 |
| 3 Bedrooms | $1,700 |
| 4 Bedrooms | $1,840 |
| 5 Bedrooms | $2,134 |
| 6 Bedrooms | $2,390 |
| 7 Bedrooms | $2,581 |
| 8 Bedrooms | $2,710 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$66,566
Housing Authorities Serving ZIP 47354
A skeptical investor looking into ZIP code 47354 in Indiana might have several concerns regarding the viability of investing in rental properties under the Section 8 program. Let's address these specific objections:
- Will FMR $860 (zip FY 2024) cover the mortgage on a $198,642 home? The Fair Market Rent (FMR) for ZIP 47354 in fiscal year 2024 is set at $860 per month. To determine if this will cover the mortgage, we need to calculate the monthly mortgage payment. Assuming a typical 30-year fixed-rate mortgage with an interest rate of 4%, the monthly payment on a $198,642 home would be approximately $970. This means that the FMR of $860 falls short by about $110 per month. Investors would need to factor in additional income sources or consider properties with lower purchase prices to ensure the FMR covers the mortgage.
- Is there enough renter demand at 10.4%? The rental vacancy rate for ZIP 47354 stands at 10.4%. While this percentage indicates a moderate level of vacancy, it does not necessarily mean there isn't sufficient demand. A 10.4% vacancy rate suggests that the majority of units are occupied, but it also points to some over-supply. To assess demand, investors should look at the overall population growth and employment trends in the area. If both are positive, the current vacancy rate could be due to seasonal fluctuations or a temporary surplus of rental units. However, the data alone does not provide a complete picture of long-term demand stability.
- Will vouchers keep pace with $869 market rents? The FMR for ZIP 47354 is $860, while the market rent is slightly higher at $869. Vouchers are generally designed to cover the FMR, so landlords might face a small gap between voucher payments and market rents. This difference is only $9 per month, which is relatively minor compared to the total rent. It's important to note that the Housing Choice Voucher program aims to adjust FMRs annually based on changes in housing costs. Therefore, it is likely that the voucher amounts will align more closely with market rents in future years, especially if local rents continue to rise.
The data provides a snapshot of the financial landscape in ZIP 47354, but investors should also consider qualitative factors such as the economic health of the region, the quality of schools, and access to amenities when making investment decisions. While the numbers present challenges, they also highlight opportunities for those willing to navigate them carefully.
Data Sources: FMR data from HUD (2027). 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.