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 | $1,170 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,500 |
| 3 Bedrooms | $1,830 |
| 4 Bedrooms | $1,990 |
| 5 Bedrooms | $2,308 |
| 6 Bedrooms | $2,585 |
| 7 Bedrooms | $2,792 |
| 8 Bedrooms | $2,932 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,500 | $234,562 | 0.64% | D |
| 3BR | $1,830 | $321,994 | 0.57% | F |
| 4BR | $1,990 | $413,399 | 0.48% | F |
| 5BR | $2,308 | $516,493 | 0.45% | F |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP code 46304, which includes Chesterton, IN, and is part of the Porter County County, Gary, IN HUD Metro FMR Area, stands at $1380 for the fiscal year 2024. This figure is slightly below the current market rent, as indicated by the Zillow Observed Rental Index (ZORI), which is set at $1,415. For Section 8 investors, this means that properties rented at the HUD FMR will marginally cashflow, given the slight difference between the two rates.
To further analyze the investment potential, consider the median home value in ZIP 46304, which is $329,892. The rent-to-price ratio can be calculated by dividing the annual rental income by the property value. Using the HUD FMR, the annual rental income would be approximately $16,560 ($1380 x 12 months), leading to a rent-to-price ratio of about 5%. This ratio suggests that the rental income is relatively low compared to the property value, but still viable for Section 8 investors.
The median Days on Market (DOM) for properties in this area is 56 days, indicating a reasonably quick turnover rate for rentals. Additionally, the price-cut share of 0.2% shows that there is little pressure to reduce asking prices, suggesting a stable market environment.
In conclusion, the strongest investor angle in ZIP 46304 is likely to be stability, given the close alignment between the HUD FMR and market rent, coupled with the minimal need for price adjustments and a moderate DOM period. This makes it an attractive option for those seeking consistent, low-risk returns through Section 8 tenancy.
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.