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 | $890 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,140 | $104,620 | 1.09% | B |
| 3BR | $1,390 | $134,767 | 1.03% | B |
| 4BR | $1,510 | $152,144 | 0.99% | C |
| 5BR | $1,752 | $169,063 | 1.04% | B |
U.S. Census Bureau data (2024)
The ZIP code 46312, located in East Chicago, IN, presents a market characterized by a delicate balance between supply and demand. The Fair Market Rent (FMR) for the area stands at $990 for fiscal year 2024, closely aligning with the Zillow Observed Rental Index (ZORI) of $1,011. This indicates that rental prices are fairly stable and reflect the true cost of renting in the area.
The low price-cut share of 0.3% suggests that landlords are generally able to maintain their asking rents without needing to reduce them significantly, implying a moderate level of demand. However, the absence of data on days on market (DOM) means we cannot definitively assess the speed at which properties are being rented or sold. Nonetheless, the median home value of $128,148 provides insight into the affordability of homeownership in the area, which could influence the decision-making process of potential buyers versus renters.
A significant 57.1% of residents in ZIP 46312 are renters, indicating a substantial long-term housing pressure. This high percentage of renters suggests that many individuals find it more practical or necessary to rent rather than buy, possibly due to financial constraints or job instability. Such dynamics can create a steady demand for rental properties, making it an attractive market for landlords and small-portfolio investors.
In summary, the snapshot of ZIP 46312 reveals a market where rental demand is robust, supported by a high renter share. The relatively stable rental prices and low price-cut share point towards a balanced market, neither heavily favoring excess supply nor overwhelming demand. For investors, the high proportion of renters implies a consistent stream of potential tenants, though the exact dynamics of supply and demand require further analysis of DOM data.
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.