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 | $850 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $147,916 | 0.68% | D |
| 3BR | $1,320 | $232,607 | 0.57% | F |
| 4BR | $1,480 | $317,764 | 0.47% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking at Waveland, IN (ZIP 47989) might raise several concerns regarding the feasibility of investing in rental properties here. Let's address these objections head-on using the available data.
Objection 1: Will the Fair Market Rent (FMR) of $860 for the zip code in fiscal year 2024 cover the mortgage on a $211,741 home?
The FMR of $860 needs to be compared against the expected monthly mortgage payment for a property valued at $211,741. Assuming a 30-year fixed-rate mortgage at an average rate of around 5%, the monthly payment on the principal and interest alone would be approximately $1,125. This does not include property taxes, insurance, maintenance, and other costs associated with owning a home. Therefore, the FMR of $860 will not fully cover the mortgage payment, leaving a shortfall of roughly $265 per month. This indicates that additional income sources or lower mortgage rates would be necessary to ensure profitability.
Objection 2: Is there enough renter demand at 7.3%?
The 7.3% rental vacancy rate suggests a moderate level of demand for rental properties in Waveland, IN. A lower vacancy rate generally means higher demand. However, the data does not provide a comprehensive view of the total number of renters or the dynamics of the local housing market. To accurately assess demand, further investigation into the population growth trends and the ratio of renters to homeowners would be required. The current vacancy rate implies that there is room for new rental units without significantly impacting existing rents.
Objection 3: Will vouchers keep pace with $483 market rents?
The voucher amount of $483 must be considered in light of the market rents. If the market rents are higher than the voucher amount, landlords may face challenges in attracting tenants who rely solely on vouchers. However, the data does not specify if the $483 is the maximum allowable rent or the average voucher payment. It also lacks information on whether voucher holders can contribute additional funds towards rent. To determine if vouchers will keep pace, one would need to look at the trend of voucher increases over time and compare it with the inflation rate and local rent increases. Without this historical context, it's difficult to definitively state whether vouchers will remain competitive.
In summary, while Waveland, IN offers some potential for real estate investment, particularly in the rental sector, careful consideration of the financials and market conditions is essential. The FMR is insufficient to cover the mortgage payment on a $211,741 home, indicating the need for a more detailed financial plan. The rental vacancy rate suggests moderate demand but requires further analysis for a complete picture. Lastly, the adequacy of vouchers in covering market rents remains uncertain without a broader understanding of their adjustment patterns and the ability of tenants to supplement them.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.