Location: Jay County, IN | Metro: Wells 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 | $1,010 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $110,765 | 0.91% | C |
| 3BR | $1,350 | $167,767 | 0.8% | C |
| 4BR | $1,560 | $188,656 | 0.83% | C |
U.S. Census Bureau data (2024)
A skeptical investor might ask if the Fair Market Rent (FMR) of $980 for ZIP 47359 in fiscal year 2026 will be sufficient to cover the mortgage on a home priced at $141,649. The answer depends on several factors including interest rates and the loan term. Assuming a 30-year fixed-rate mortgage with an average rate of 4%, the monthly principal and interest payment would be approximately $670. This leaves a buffer of around $310 per month before considering property taxes, insurance, and maintenance costs. Thus, while it is tight, the FMR should cover the mortgage payments under these conditions.
The question arises whether there is enough renter demand at 24.0%. This percentage indicates that a quarter of the households in Montpelier, IN, are renters. While this figure is lower than the national average, it still represents a significant portion of the population. The actual demand will depend on the local job market and economic conditions. Without specific data on future job growth or migration patterns, it's difficult to make a definitive statement. However, the current rental rate suggests that there is a stable demand for rental properties in the area.
The final concern is whether housing vouchers will keep pace with market rents of $649. The Housing Choice Voucher program aims to ensure that voucher amounts reflect the local market conditions. However, the pace at which voucher amounts adjust can lag behind rapid increases in market rents. Given the relatively low market rent in ZIP 47359, it is likely that vouchers will remain competitive. Nonetheless, landlords should monitor local housing authority announcements regarding voucher adjustments.
In summary, while the data does not fully address all concerns, it suggests that the FMR is adequate to cover mortgage payments, there is a stable but modest demand for rentals, and housing vouchers are likely to remain competitive with market rents. Landlords and investors should continue to monitor local economic indicators and housing authority updates to make informed decisions.
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.