Location: Muncie, 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 | $890 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,870 |
| 5 Bedrooms | $2,169 |
| 6 Bedrooms | $2,429 |
| 7 Bedrooms | $2,623 |
| 8 Bedrooms | $2,754 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,130 | $171,119 | 0.66% | D |
| 3BR | $1,420 | $222,594 | 0.64% | D |
| 4BR | $1,870 | $377,796 | 0.49% | F |
U.S. Census Bureau data (2024)
The analysis for the Section 8 program in ZIP code 47396 reveals a significant gap between the Fair Market Rent (FMR) set at $980 and the actual market rent reported at $910 for the fiscal year 2024. This gap amounts to $70, or approximately 7.7% of the market rent.
In Yorktown, IN, where only 10.5% of residents are renters and the median home value stands at $251,564, the FMR exceeding the market rent by such a margin suggests that properties participating in the Section 8 program can achieve higher yields compared to the open rental market. The median income in Yorktown is $78,125, which further underscores the financial stability of potential voucher holders.
The higher FMR allows landlords to charge more for their units without setting rents above what voucher holders can afford. This makes the ZIP code an attractive investment for those looking to maximize returns through government subsidies. Landlords can expect to receive the difference between their rent and the market rate from the Department of Housing and Urban Development (HUD), ensuring a steady cash flow even if the local rental market is relatively low.
However, it's crucial to understand the implications of this gap. While the higher FMR benefits landlords, it also means that the cost of housing for voucher tenants is effectively subsidized, allowing them to pay less than the open-market rate. This can be seen as a way to support affordable housing in an area where the median home value is high, potentially making it difficult for lower-income families to find suitable rental housing.
In conclusion, the gap between FMR and market rent in ZIP 47396 presents a yield opportunity for landlords and small-portfolio investors. By participating in the Section 8 program, they can charge closer to the FMR while still attracting tenants who benefit from government assistance, thus achieving better financial outcomes than the current market conditions would otherwise allow.
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.