Location: Randolph County, IN | Metro: Muncie, IN MSA
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 | $930 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,960 |
| 5 Bedrooms | $2,274 |
| 6 Bedrooms | $2,547 |
| 7 Bedrooms | $2,751 |
| 8 Bedrooms | $2,889 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,190 | $151,247 | 0.79% | D |
| 3BR | $1,490 | $238,997 | 0.62% | D |
| 4BR | $1,960 | $330,358 | 0.59% | F |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 investment in ZIP code 47383 in Selma, IN, are significant. Tenant turnover is a primary concern, with the market rent at $824 compared to the Federal Market Rent (FMR) of $1050 for FY 2024. This discrepancy suggests that tenants might struggle to afford the higher FMR rate, leading to increased turnover. Additionally, vacancy exposure is a critical issue, as the days on market (DOM) is listed as N/A, indicating a lack of recent sales data which can obscure trends in rental demand. Deferred maintenance is another risk factor, considering the typical home value of $239,544 and the median income of $61,250. The median income figure implies that many residents might have limited financial resources to cover unexpected repairs or maintenance costs, potentially resulting in higher maintenance expenses for landlords.
Despite these challenges, there are several factors that mitigate the risks. The renter share in Selma, IN, is 12.6%, which is relatively high. A high percentage of renters often translates into a robust demand for housing vouchers, providing a stable source of income for landlords who qualify for Section 8 programs. The presence of voucher holders can help fill vacancies quickly and reduce the likelihood of prolonged periods without rental income.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.