Location: Knox County, IN | Metro: Knox 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 | $770 |
| 1 Bedroom | $780 |
| 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 | $116,782 | 0.86% | C |
| 3BR | $1,340 | $197,137 | 0.68% | D |
U.S. Census Bureau data (2024)
The median income in ZIP 47597, which encompasses Wheatland, IN, stands at $56,953. Considering the market rate for rent at $824 per month, it becomes evident that the average household faces significant financial strain. To put this into perspective, the monthly income for a household earning the median would be approximately $4,746. Renting at $824 thus consumes nearly 17.4% of their gross monthly income, leaving limited funds for other essential expenses.
When comparing the market rate to the Fair Market Rent (FMR) set by the government, which is $960 for the metro area in fiscal year 2026, the disparity is clear. The FMR represents the maximum amount that a housing voucher will cover, indicating that landlords might need to consider the voucher program if they wish to attract tenants who cannot afford the market rate. However, the FMR is higher than the current market rate, suggesting that landlords could potentially receive slightly more per unit if they participate in the voucher program.
Given that only 15.5% of the 745 residents are renters, the competition among landlords is relatively low. This means there are fewer rental properties available compared to the number of potential renters, which could lead to landlords having more control over their pricing and selection of tenants. However, the affordability gap poses a challenge; many potential renters may struggle to pay the market rate without assistance.
The takeaway for landlords is that participating in the voucher program can be beneficial, especially given the higher FMR compared to the current market rate. It ensures a steady stream of tenants who can afford the rent through government assistance, reducing the risk of vacancies. For those considering cash-paying tenants exclusively, they must be prepared to offer competitive rates and possibly deal with a higher vacancy rate due to the limited number of households capable of paying the full market price without aid.
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.