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 | $790 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,370 |
| 5 Bedrooms | $1,589 |
| 6 Bedrooms | $1,780 |
| 7 Bedrooms | $1,922 |
| 8 Bedrooms | $2,018 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $113,597 | 0.89% | C |
| 3BR | $1,240 | $169,472 | 0.73% | D |
| 4BR | $1,370 | $183,736 | 0.75% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 47948, Goodland, IN, reveals two distinct rental income scenarios based on the Fair Market Rent (FMR) and market rent figures. Using the annualized 2BR FMR of $870 for fiscal year 2024, the potential rental income is $10,440 per year. Given the median home value of $159,018, this translates into an implied gross yield of approximately 6.56%. This calculation is derived from dividing the annual rental income by the property's value.
In contrast, the market rent figure of $629 per month yields an annual income of $7,548. When this amount is divided by the median home value, it results in an implied gross yield of about 4.74%. This lower yield reflects the actual market conditions as reported by the Census ACS data.
The 17.4% renter density suggests that the market rent scenario is more realistic for most properties in ZIP 47948. The fact that the days on market (DOM) is listed as N/A indicates that there might be limited recent sales data available, which could affect the accuracy of the median home value used in these calculations. However, the market rent figure provides a clearer indication of what landlords can expect to earn under typical circumstances.
The FMR-based gross yield of 6.56% is significantly higher than the market rent-based gross yield of 4.74%, suggesting that while Section 8 tenants offer a stable income source, the overall profitability might be overstated when compared to the actual rental market dynamics. For landlords and small-portfolio investors, understanding these differences is crucial for setting realistic expectations and making informed investment decisions.
To summarize, the gross yield for a property in ZIP 47948 under the FMR scenario is 6.56%, while the market rent scenario implies a gross yield of 4.74%. Given the local renter density and the lack of detailed DOM data, the latter scenario is likely more reflective of the true earning potential for most properties in this area.
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.