Location: Jay County, IN | Metro: Blackford 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 | $910 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,600 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,220 | $120,087 | 1.02% | B |
| 3BR | $1,600 | $179,119 | 0.89% | C |
U.S. Census Bureau data (2024)
In ZIP Code 47369, located in Pennville, IN, the median Fair Market Rent (FMR) for fiscal year 2026 is $1,150. To determine if this will cover the mortgage on a home valued at $166,908, we must consider the typical mortgage payment for a home in this price range. Assuming a 20% down payment and a 30-year fixed-rate mortgage, the monthly mortgage payment would be approximately $740. Given the FMR of $1,150, the rent covers the mortgage comfortably, leaving room for additional expenses such as maintenance, property taxes, and insurance.
A skeptical investor might question whether the 17.0% renter demand in Pennville is sufficient. With 92 out of 557 total housing units being renter occupied, there is a notable presence of renters. However, the low diversity index (11) suggests a homogeneous population, which could limit rental demand. Additionally, the negative growth rate projected for 2025-2030 (-0.37%) indicates potential challenges in maintaining high renter occupancy rates over time.
The final concern is whether housing vouchers will keep pace with market rents of $936. According to the data, the median household income is $52,012, which places many residents below the threshold for paying market rents without assistance. While the Housing Choice Voucher program aims to provide support, the exact amount of voucher utilization and its adequacy in covering market rents is not specified in the available data. Investors should monitor local housing authority announcements and trends to assess the reliability of voucher support.
To summarize, while the FMR of $1,150 comfortably covers the mortgage on a $166,908 home, the relatively low renter demand and projected population decline present challenges. The adequacy of housing vouchers in keeping up with market rents remains uncertain and requires further investigation.
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.