Location: White County, IN | Metro: Jasper County, 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 | $880 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,180 | $170,190 | 0.69% | D |
| 3BR | $1,410 | $200,283 | 0.7% | D |
| 4BR | $1,550 | $233,953 | 0.66% | D |
U.S. Census Bureau data (2024)
Monon, IN, located in ZIP code 47959, is a small community with a total population of 2,679 residents. Approximately 27.8% of these residents are renters, indicating a modest demand for rental properties. The median household income in the area stands at $48,750, which suggests a middle-class community where residents might find it challenging to afford market rents without assistance. The median home value in Monon is $179,765, reflecting an affordable housing market relative to many other parts of the country.
From an investment perspective, the Federal Market Rent (FMR) for ZIP code 47959 in fiscal year 2024 is set at $1150, while the average market rent, according to the Census Bureau's American Community Survey (ACS), is $894. This disparity between the FMR and the market rent highlights a potential opportunity for landlords and small-portfolio investors interested in Section 8 properties. The higher FMR can provide a stable and predictable source of income, particularly beneficial for those seeking a hands-off approach to property management.
The dynamics of Monon's rental market make it suitable for both hands-off operators and hands-on value-add buyers. For hands-off voucher operators, the guaranteed income from the Section 8 program, combined with the lower-than-average local rents, ensures a steady cash flow with minimal tenant turnover risk. On the other hand, for hands-on value-add buyers, there is room to improve property values and potentially increase rents closer to the FMR level, although this would require careful consideration of the local economic conditions and tenant needs.
In conclusion, Monon offers a balanced environment for Section 8 investments. With its modest population and middle-income residents, the area supports a stable rental market. The gap between the FMR and market rent presents a clear advantage for hands-off operators, while also allowing for strategic value enhancement by active investors. However, due diligence is essential to ensure that improvements align with the financial capabilities of the tenants, maintaining a sustainable and profitable investment.
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.