Location: Randolph County, IN | Metro: Randolph County, IN
| 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 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 47382 provides a clear picture of potential returns for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a 2-bedroom apartment in the metro area for fiscal year 2026 is set at $960 annually. This translates to a monthly payment of approximately $80 per unit. Given the median home value in the area is $76,628, we can calculate an implied gross yield based on these figures.
Using the FMR, the annual rental income would be $960. Dividing this by the median home value gives us an implied gross yield of roughly 1.25%. This is calculated as follows: $960 / $76,628 = 0.0125 or 1.25%. However, it's important to note that this figure assumes the entire property is rented out as a 2-bedroom apartment, which might not always be the case depending on the property type.
In contrast, the market rent for a 2-bedroom apartment is reported at $770 annually according to the Census ACS. This results in a monthly rent of about $64. Using this figure, the implied gross yield drops significantly to approximately 1.01%. The calculation is: $770 / $76,628 = 0.0101 or 1.01%.
Given the 31.8% renter density in ZIP 47382, the market rent scenario appears more realistic. A higher proportion of owner-occupiers suggests that the demand for rental properties might be lower, making it difficult to secure tenants willing to pay the FMR. Additionally, the N/A-day DOM (days on market) indicates that there is either insufficient data or a lack of consistent rental listings, further supporting the argument for using the market rent figure in your calculations.
Investors should focus on the market rent of $770 annually when evaluating the gross yield of potential investments in ZIP 47382. This yields a more accurate representation of what can realistically be expected in terms of rental income, given the local conditions and the actual rental rates paid by tenants in the area.
Data Sources: FMR data from HUD (2027). 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.