Location: Gary, IN | Metro: Gary, 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 | $1,580 |
| 1 Bedroom | $1,660 |
| 2 Bedrooms | $2,020 |
| 3 Bedrooms | $2,460 |
| 4 Bedrooms | $2,680 |
| 5 Bedrooms | $3,109 |
| 6 Bedrooms | $3,482 |
| 7 Bedrooms | $3,761 |
| 8 Bedrooms | $3,949 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,460 | $760,345 | 0.32% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 46301 in Gary, Indiana reveals key insights into the viability of investment opportunities for landlords and small-portfolio investors.
The rent math does not work favorably. The Fair Market Rent (FMR) for ZIP 46301 in fiscal year 2024 is set at $1120, significantly lower than the market rent reported at $1,675 according to Census ACS data. This discrepancy indicates that landlords might struggle to cover their costs if they adhere strictly to the FMR guidelines.
Acquisition is challenging due to the high median home value of $659,786. Given that the day DOM (Days on Market) and the percentage of homes needing price cuts are not available, it's difficult to assess the speed and ease of property acquisition. However, the high median home value suggests that purchasing properties in this area could be financially demanding and may require careful consideration of the potential return on investment.
Tenant demand is limited in ZIP 46301. With a total population of 650 and only 3.7% of residents being renters, the pool of potential tenants is relatively small. This low renter share implies that finding and retaining tenants could be more difficult compared to areas with higher rental populations.
In conclusion, ZIP 46301 presents a challenging environment for real estate investment, particularly under Section 8. The disparity between the FMR and market rents makes it difficult to manage properties profitably. High median home values complicate the acquisition process, while the limited tenant demand poses additional risks. These factors collectively suggest that investing in this area would require a thorough understanding of the local market dynamics and a willingness to accept potentially lower returns.
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.