Location: Montgomery County, IN | Metro: Montgomery 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 | $870 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $158,157 | 0.64% | D |
| 3BR | $1,320 | $239,218 | 0.55% | F |
| 4BR | $1,420 | $292,861 | 0.48% | F |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in Section 8 properties in ZIP code 47940, located in Darlington, Indiana, must be carefully considered. Tenant turnover is a significant concern, with the market rent at $784 being notably lower than the Fair Market Rent (FMR) of $960 for FY 2026 in the metro area. This disparity suggests that tenants might find it challenging to afford higher rents outside the Section 8 program, leading to frequent moves.
Vacancy exposure is another critical issue. The Days on Market (DOM) data is not available, which indicates uncertainty regarding how long properties might remain vacant between tenancies. This lack of information can pose challenges for cash flow management, especially if vacancies occur frequently.
Deferred maintenance is also a risk factor. With a typical home value of $212,711 and a median household income of $70,711, residents may struggle to maintain their homes adequately. Landlords should anticipate the need for regular upkeep and repairs, which can add to the overall cost of property ownership.
However, these risks are offset by the high concentration of renters in the area. The renter share stands at 17.8%, indicating a robust demand for rental properties. This high density of renters often translates into a greater number of Section 8 vouchers being utilized, providing a steady stream of tenants who can reliably pay rent through the voucher program.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.