Location: Randolph County, IN | Metro: Jay 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 | $940 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,660 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,270 | $107,419 | 1.18% | B |
| 3BR | $1,660 | $158,306 | 1.05% | B |
| 4BR | $1,670 | $173,915 | 0.96% | C |
U.S. Census Bureau data (2024)
ZIP code 47373, located in Redkey, IN, within the broader Randolph County, IN metro area, presents itself as a cash-flow anchor within a Section 8 portfolio strategy. This classification is based on the significant spread between the Fair Market Rent (FMR) for the area and the actual market rents.
The FMR for a one-bedroom unit in the Randolph County, IN metro area for fiscal year 2026 is set at $990. In contrast, the market rent for a similar unit in ZIP 47373 is $1,233. This means that landlords can secure a rental income that is $243 higher per month above the FMR, which provides a cushion against potential fluctuations in the local housing market.
Moreover, the median home value in ZIP 47373 is $137,753, indicating that property acquisition costs are relatively low compared to other areas. The combination of lower property values and higher-than-FMR rents ensures that landlords can achieve a positive cash flow from day one without needing to rely on future appreciation of property values to justify their investment.
The renter share in ZIP 47373 stands at 21.9%, which suggests a moderate demand for rental properties. However, this figure alone does not outweigh the benefits of the cash flow stability provided by the higher market rents. Additionally, the median household income of $51,532 supports the notion that there is a sufficient number of residents who qualify for Section 8 assistance without putting undue pressure on the rental market.
In conclusion, ZIP 47373 should be considered a cash-flow anchor within a Section 8 portfolio due to the favorable rent-to-value ratio and the ability to generate stable income. While it may also serve as a diversifier due to the moderate renter share and median income levels, the primary focus should be on leveraging the cash flow opportunities presented by the significant spread between FMR and market rents.
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.