Location: Putnam 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 | $920 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,090 | $181,437 | 0.6% | D |
| 3BR | $1,410 | $245,517 | 0.57% | F |
| 4BR | $1,530 | $306,645 | 0.5% | F |
U.S. Census Bureau data (2024)
The market in ZIP 47954, Ladoga, IN, is characterized by a significant gap between the Fair Market Rent (FMR) and the actual market rent, suggesting that rental prices are currently below what the government deems fair for the area. The FMR stands at $1120 for the fiscal year 2024, while the market rent, according to the Census American Community Survey, is listed at $698. This disparity indicates a potential for upward pressure on rents, as landlords may seek to align their rental income closer to the FMR.
The median home value in ZIP 47954 is $228,996. However, the lack of data regarding the percentage of homes sold with price cuts and the days on market (DOM) suggests that there is insufficient information to definitively conclude whether supply is outpacing demand or vice versa. Yet, the lower-than-FMR rental rates could imply that there might be a slight oversupply of rental units or that landlords are holding off on increasing rents due to competitive pressures.
The 9.7% renter share highlights that a relatively small portion of the population in ZIP 47954 is renting. This low renter share can indicate several things: it might suggest that homeownership is prevalent, which could mean less immediate pressure on rental markets. Alternatively, it could also imply that there is limited rental stock available, leading to a smaller proportion of renters relative to homeowners. Over the long term, a low renter share can signal a stable housing market with fewer short-term fluctuations, but it also means that any changes in the economic environment could lead to increased housing pressure if more residents turn to renting.
In summary, the current snapshot of ZIP 47954 presents a rental market that is undervalued compared to the FMR, with a predominantly owner-occupied housing landscape. Landlords and small-portfolio investors should be aware of the potential for rental rates to rise towards the FMR, and the dynamics of a mostly homeowner-populated area could offer stability but also challenges in scaling rental operations.
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.