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 | $710 |
| 1 Bedroom | $920 |
| 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $134,344 | 0.75% | D |
| 3BR | $1,340 | $176,719 | 0.76% | D |
| 4BR | $1,340 | $189,835 | 0.71% | D |
U.S. Census Bureau data (2024)
A skeptical investor considering Ridgeville, IN (ZIP 47380), might have several valid concerns regarding the feasibility of investing in rental properties, particularly under the Section 8 program. Here are three key objections and how the data addresses them.
Objection 1: Will Fair Market Rent (FMR) of $960 (for the fiscal year 2026) be sufficient to cover the mortgage on a $155,468 home?
The FMR of $960 can indeed cover the mortgage on a $155,468 home, assuming an average interest rate and typical loan terms. For example, with a 30-year fixed-rate mortgage at a 4.5% interest rate, the monthly principal and interest payment would be approximately $775. This leaves a buffer of around $185 per month before factoring in property taxes, insurance, and maintenance costs. While this margin is not vast, it does provide some financial cushioning against unexpected expenses.
Objection 2: Is there enough renter demand at 18.3%?
The 18.3% of households that are renters in ZIP 47380 suggests a moderate level of demand. However, this figure alone does not indicate the overall rental market's health or potential. To better understand the situation, one would need to consider the vacancy rates and the number of available rental units relative to the population. The data provided does not offer these specifics, but an 18.3% rental rate is not unusually low and indicates that there is a segment of the population willing to rent.
Objection 3: Will vouchers keep pace with market rents of $662?
The Section 8 voucher program aims to cover a significant portion of the market rent, but whether it will keep pace with the $662 market rent in ZIP 47380 depends on the specifics of the voucher amount and any adjustments made over time. Historically, voucher amounts have increased annually to reflect inflation and changes in the housing market. As of the most recent data, the average voucher payment in the area was below $662, indicating that landlords would likely need to accept lower payments or subsidize the difference. However, it is crucial to monitor any upcoming changes in the voucher program to ensure alignment with market rents.
In conclusion, while the data provides a starting point for addressing the concerns of a Section 8 real estate investor in Ridgeville, additional research into local vacancy rates, the trend of voucher increases, and the cost of maintaining a $155,468 home would be necessary to make a fully informed investment decision.
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.