Location: Lafayette-West Lafayette, 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 | $810 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,350 | $142,391 | 0.95% | C |
U.S. Census Bureau data (2024)
A decision tree for evaluating whether to purchase properties in ZIP code 47917 for Section 8 investment can be structured around three key questions:
1) Does the Fair Market Rent (FMR) of $970 cover the debt service on a property valued at $140,875?
To determine if the FMR of $970 per month is sufficient to cover the debt service on a $140,875 property, calculate the monthly mortgage payment. Assuming a typical 30-year fixed-rate mortgage with an interest rate of 4%, the monthly mortgage payment would be approximately $670. This figure does not include property taxes, insurance, and maintenance costs, which can add another $200-$300 per month. Therefore, the total debt service would likely be around $870-$970 per month.
If we consider only the principal and interest payments, the answer is yes. The FMR of $970 is sufficient to cover the mortgage payment of $670. However, including other costs such as taxes and insurance, the FMR just meets or slightly exceeds the total debt service. This means that without additional rental income or subsidies, there might not be much profit margin left over. It depends on the landlord's willingness to accept a low-profit scenario or their ability to manage costs effectively.
2) Is the market rent above, at, or below the FMR of $970?
The data provided indicates that the market rent for ZIP code 47917 is N/A, suggesting either a lack of available data or an unusual situation where market rents are not reported. Given this, it is impossible to directly compare market rents to the FMR. In such cases, it depends on local real estate trends and the landlord's experience with similar markets. If the landlord has reason to believe that market rents are significantly higher than the FMR, they may choose to pursue non-Section 8 tenants to maximize profits. Otherwise, sticking to the FMR is the safest approach.
3) Are 5.7% of the population renting and the N/A-day days on market enough demand for Section 8 properties?
The percentage of renters in ZIP code 47917 is 5.7%, and the days on market (DOM) is listed as N/A. A low percentage of renters suggests limited demand for rental properties overall. However, the exact impact on Section 8 properties requires more context about the local housing market and the availability of Section 8 vouchers. With DOM being N/A, it's unclear how quickly properties are typically rented in this area. If the landlord finds that the number of available Section 8 vouchers is high relative to the number of eligible properties, then the answer could be yes. Otherwise, it depends on the landlord's ability to find and secure Section 8 tenants.
In conclusion, while the FMR of $970 can cover the debt service on a $140,875 property, the lack of clear market rent data and the low percentage of renters make the decision to invest in ZIP 47917 for Section 8 purposes contingent upon further research into local market conditions and the availability of Section 8 vouchers.
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.