Location: Lafayette-West Lafayette, IN | Metro: Lafayette-West Lafayette, IN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $980 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $2,210 |
| 5 Bedrooms | $2,564 |
| 6 Bedrooms | $2,872 |
| 7 Bedrooms | $3,102 |
| 8 Bedrooms | $3,257 |
U.S. Census Bureau data (2024)
The ZIP code 47924 presents several challenges for landlords considering Section 8 investments. Firstly, tenant turnover could be problematic due to the discrepancy between the market rent and the Fair Market Rent (FMR) set at $1080 for FY 2024. This could lead to difficulties in attracting tenants willing to pay the market rate, thereby increasing dependency on Section 8 vouchers. Secondly, vacancy exposure is a significant concern given the lack of data on Days on Market (DOM), which suggests uncertainty around how quickly properties can be rented out. Lastly, deferred maintenance exposure is a critical issue, especially when there is no specific information on the typical home value or median income in the area. This combination of factors can make it challenging to maintain properties without additional financial strain.
However, these risks must be weighed against the 0.0% renter share in the area. While this figure seems unusually low and may require verification, typically a higher concentration of renters indicates greater demand for housing assistance programs such as Section 8. In theory, this could mean that the competition for Section 8 tenants might be lower, thus potentially reducing the pressure to accept below-market rents. Despite the potential benefits, the absence of key data points makes it difficult to fully assess the stability and profitability of Section 8 investments in this area.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). 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.