Location: White County, IN | Metro: Warren County, IN HUD Metro FMR Area
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 | $1,000 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $2,260 |
| 5 Bedrooms | $2,622 |
| 6 Bedrooms | $2,937 |
| 7 Bedrooms | $3,172 |
| 8 Bedrooms | $3,331 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,350 | $268,948 | 0.5% | F |
| 3BR | $1,610 | $324,008 | 0.5% | F |
| 4BR | $2,260 | $428,624 | 0.53% | F |
| 5BR | $2,622 | $584,610 | 0.45% | F |
U.S. Census Bureau data (2024)
West Lafayette, ZIP code 47906, is a classic university-driven market defined almost entirely by the presence of Purdue University. This area is characterized by a dense mix of off-campus student housing and faculty rentals, creating a consistently high-turnover but eternally liquid environment. The local economy is anchored by the university, which acts as the dominant employer and stabilizing force, buffering the area against the economic downturns that often plague smaller Midwestern cities.
Financially, the market presents a sharp divergence between subsidized limits and private market rates. The HUD Fair Market Rent (FMR) for a 2-bedroom unit is $1,270, whereas the current market rent sits significantly higher at $1,848, creating a gap of $578 per month that landlords must absorb if accepting vouchers. Real estate entry points are substantial, with a median home value of $363,757 and a specific median 2BR sale price of $260,235. Inventory moves at a moderate pace, with a median days on market of 56 days, suggesting that while demand is steady, properties do not disappear instantly.
The tenant pool is robust, driven by a massive 56.5% renter share and a median household income of $53,103. This income level indicates that while many residents are employed, the cost of market-rate housing likely pushes a significant portion toward housing assistance. The area benefits from highly rated school districts and local transit options like CityBus, which serve the broader community beyond just students, enhancing the rental appeal for families relying on vouchers.
The Section 8 verdict for 47906 is cautious but leans toward appreciation over immediate cash flow. The $578 negative spread between the $1,270 voucher and the $1,848 market rent makes strict cash-flow investing difficult without substantial equity or a lower purchase price than the median. However, the strong institutional anchor of Purdue University offers long-term stability and property value preservation, making this a play for capital appreciation rather than monthly yield.
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.