Location: Lafayette-West Lafayette, IN | Metro: Gary, 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 | $750 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,210 | $203,163 | 0.6% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 47942 does not favor landlords. The Fair Market Rent (FMR) set at $860 for the fiscal year 2024 is below the market rent of $955 as reported by the Census ACS. This means that landlords would have to accept a lower rent than what the market suggests to comply with HUD's guidelines.
Acquisition in this area is relatively affordable, with a median home value of $187,423. However, due to the lack of available data on days on market (DOM) and the percentage of homes that required price cuts, it is challenging to assess the full picture of acquisition affordability. Landlords should proceed with caution and consider additional factors such as neighborhood trends and property condition before making an investment decision.
Tenant demand in ZIP 47942 is modest. With a total population of 767 and only 12.7% of residents being renters, the pool of potential tenants is limited. This could result in higher vacancy rates and longer periods between tenancies, which might impact cash flow negatively.
In conclusion, ZIP 47942 presents a challenging environment for landlords and small-portfolio investors. The discrepancy between the FMR and market rent indicates that compliance with HUD guidelines will reduce profitability. While the median home value suggests that acquiring properties is financially feasible, the absence of data on DOM and price-cut percentages leaves significant uncertainty. Moreover, the low renter share implies that finding tenants could be difficult. These factors collectively suggest that this area may not be ideal for real estate investments aimed at maximizing returns through rental income.
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.