Location: White County, IN | Metro: Carroll 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 | $830 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $850 | $159,373 | 0.53% | F |
| 2BR | $1,110 | $209,850 | 0.53% | F |
| 3BR | $1,330 | $267,763 | 0.5% | F |
| 4BR | $1,470 | $352,790 | 0.42% | F |
| 5BR | $1,705 | $427,023 | 0.4% | F |
U.S. Census Bureau data (2024)
The median income in ZIP 47960, Monticello, IN, stands at $65,603. The market rate for rent is $902 according to Census ACS data. This means that the average household in Monticello faces a significant challenge in affording market-rate housing.
To put this into perspective, let's consider the financial strain on a typical renter. Assuming a standard guideline that no more than 30% of income should go towards housing, a household earning the median income would have an ideal monthly housing budget of approximately $1,640. However, the actual market rate of $902 is below this threshold, indicating that while it is affordable, it still represents a substantial portion of the household's income.
The Federal Market Rent (FMR) standard for voucher payments in the zip code for fiscal year 2024 is set at $860. This is slightly below the market rate, suggesting that tenants with vouchers might find it challenging to secure housing at the current market price, as landlords may prefer higher cash rents.
Given that only 18.5% of the population are renters and the total population is 14,825, the competition among landlords for tenants is relatively low. However, the affordability gap between the median income and the rent prices, along with the voucher payment standards, means that landlords must carefully consider their tenant acquisition strategies.
The takeaway for landlords is clear: focusing solely on cash-paying tenants might limit your pool of potential renters, especially if they are seeking more affordable options. Accepting Section 8 vouchers could be a strategic move to tap into a segment of the market that is otherwise underserved. While the voucher payment of $860 is lower than the market rate, it ensures a stable source of income and reduces the risk of vacancy in a market where affordability is a concern for many households.
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.