Section 8 Fair Market Rent (FMR) for ZIP 46319 - 2027

Location: Gary, IN | Metro: Gary, IN HUD Metro FMR Area

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,160
1 Bedroom	$1,230
2 Bedrooms	$1,490
3 Bedrooms	$1,810
4 Bedrooms	$1,980
5 Bedrooms	$2,297
6 Bedrooms	$2,573
7 Bedrooms	$2,779
8 Bedrooms	$2,918

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

17,847

Median Household Income

$74,662

Housing Units

8,038

Renter Percentage

27.1%

Occupancy Rate

94.7%

Renter Occupied

2,060

Housing Authorities Serving ZIP 46319

Housing Authority of the City of Gary Indiana (Gary, IN) - 2,527 Section 8 vouchers
Housing Authority of the City of East Chicago (East Chicago, IN) - 1,147 Section 8 vouchers
Housing Authority of the City of Hammond (Hammond, IN) - 898 Section 8 vouchers

To determine if you should invest in ZIP 46319 (Griffith, IN) for Section 8 properties, follow this decision tree based on the provided data.

1) Does FMR $1240 (zip FY 2024) clear debt service on a $247,426 property?

No: The Fair Market Rent (FMR) of $1240 does not sufficiently cover the debt service on a property valued at $247,426. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. At this valuation, the rental income from a Section 8 tenant would be insufficient to meet these obligations without additional subsidies or a lower purchase price.

2) Is market rent $1,291 (ZORI) above, at, or below FMR?

Above FMR: The Zillow Observed Rent Index (ZORI) of $1291 is slightly higher than the FMR of $1240. This indicates that non-Section 8 tenants might be willing to pay a bit more than what the government will subsidize for a Section 8 unit. However, this margin is narrow and may not significantly offset the shortfall in covering debt service.
At or Below FMR: If the market rent is at or below the FMR, then there is no premium to be gained from renting to non-Section 8 tenants. This makes the investment less attractive unless the property can be purchased for a price where the FMR covers all expenses.

3) Are 27.1% renters + N/A-day DOM enough demand?

It Depends: With 27.1% of the population being renters, there is a moderate level of demand for rental properties in ZIP 46319. However, the lack of data on days on market (DOM) means we cannot accurately assess how quickly units are rented. A low DOM would suggest strong demand, whereas a high DOM would indicate weaker demand. Without this information, it's difficult to make a definitive judgment on whether the demand is sufficient to support an investment in Section 8 properties.

In conclusion, if your primary focus is on Section 8 properties, ZIP 46319 presents challenges due to the FMR not covering debt service on a $247,426 property. While the market rent is slightly above the FMR, indicating some potential for non-Section 8 rentals, the demand for rentals is moderate and requires further investigation into the local rental market dynamics.

Data Sources: FMR data from HUD (2027). 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.