Location: Montgomery County, IN | Metro: Lafayette-West Lafayette, 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 | $920 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,120 | $152,733 | 0.73% | D |
| 3BR | $1,390 | $202,266 | 0.69% | D |
U.S. Census Bureau data (2024)
The ZIP code 47955, located in Linden, Indiana, presents an interesting scenario when viewed from the perspective of renters. The median household income stands at $71,591, which is slightly below the market rate for housing. Renters in this area face a monthly market rate of $735 for their living expenses according to the latest Census ACS data. This indicates a slight financial strain on households, as they must allocate a significant portion of their income towards rent.
However, the situation becomes even more challenging when considering the Fair Market Rent (FMR) set at $1070 for zip code 47955 for fiscal year 2024. This figure represents the maximum amount that a Section 8 voucher holder can pay for rent. The disparity between the market rate ($735) and the voucher payment standard ($1070) highlights a substantial affordability gap for renters without vouchers. In essence, those relying solely on their income to cover rent may struggle to find suitable accommodation in the area, given the higher FMR set by the government.
With only 21.5% of the 854 population being renters, competition among landlords could be fierce. Landlords who accept Section 8 vouchers may have a competitive edge due to the higher subsidy available compared to the market rate. However, this also means that landlords might need to balance between accepting subsidized tenants and attracting cash-paying tenants who can afford the higher rents supported by the voucher system.
The takeaway for landlords considering their strategy in ZIP 47955 is clear. Accepting Section 8 vouchers can provide a steady stream of income, albeit at a fixed rate, while catering to cash-paying tenants could potentially offer higher returns. Yet, landlords should be aware that the local economy and the income levels of residents suggest a preference for more affordable options. Therefore, landlords aiming to maximize occupancy and long-term stability should seriously consider the benefits of participating in the Section 8 program.
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.