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 | $710 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,340 |
| 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 | $127,610 | 0.79% | D |
| 3BR | $1,340 | $182,742 | 0.73% | D |
| 4BR | $1,340 | $216,362 | 0.62% | D |
U.S. Census Bureau data (2024)
A landlord considering ZIP 47355 (Lynn, IN) for Section 8 investments must navigate several key factors to make an informed decision. The following decision tree outlines the critical steps and data points to evaluate.
1) Does the Fair Market Rent (FMR) of $960 clear debt service on a $167,784 property?
Yes: At $960 per month, the FMR is sufficient to cover the debt service on a property valued at $167,784. This means that a landlord can reasonably expect to break even or profit from the rental income when factoring in typical financing costs.
No: If the FMR does not cover the debt service, then investing in this area for Section 8 tenants would not be financially viable. However, given the FMR of $960, it does clear the debt service on a $167,784 property, so this scenario does not apply to ZIP 47355.
2) Is the market rent of $642 (Census ACS) above, at, or below the FMR?
Above: If the market rent were higher than the FMR, it would indicate that landlords could potentially charge more than what the government subsidizes, making Section 8 properties less attractive. However, the market rent in ZIP 47355 is below the FMR, suggesting that landlords might find it challenging to attract non-Section 8 tenants without lowering their rent.
At: This scenario would imply that the market rent matches the FMR, making Section 8 properties competitive with the general rental market. In ZIP 47355, this is not the case, as the market rent is lower than the FMR.
Below: With the market rent at $642, which is below the FMR of $960, landlords have an incentive to participate in the Section 8 program. They can receive higher rents compared to the local market rate, thus improving their profitability.
3) Are 16.2% renters + N/A-day days on market (DOM) enough demand?
It Depends: ZIP 47355 has 16.2% of its population renting, which is a relatively low percentage compared to urban areas but still represents a significant portion of potential tenants. The absence of data on days on market (DOM) makes it difficult to assess how quickly rental units are typically filled. If the DOM is short, it suggests strong demand; if long, it indicates weak demand. Without this information, landlords should consider other indicators such as vacancy rates and local economic conditions to gauge demand.
In conclusion, based on the provided data, the FMR of $960 is sufficient to cover debt service on a property priced at $167,784, and the market rent of $642 is below the FMR, making Section 8 participation attractive. However, the demand analysis is inconclusive due to missing DOM data. Landlords should further investigate local rental dynamics before making an investment decision.
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.