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 | $1,020 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,300 | $131,554 | 0.99% | C |
| 3BR | $1,580 | $155,807 | 1.01% | B |
| 4BR | $1,730 | $187,398 | 0.92% | C |
| 5BR | $2,007 | $212,282 | 0.95% | C |
U.S. Census Bureau data (2024)
The rent math in ZIP 46320, part of the Hammond, IN, Gary, IN HUD Metro FMR Area, does not work in favor of landlords. The Fair Market Rent (FMR) set at $1040 for fiscal year 2024 is significantly lower than the market rent, which stands at $1,275 (ZORI). This gap indicates that landlords relying on Section 8 vouchers will receive less income compared to market rates.
Acquisition in this area is relatively affordable, with a median home value of $138,706. However, the lack of data on days on market (DOM) and the fact that only 0.2% of homes require a price cut suggest limited competition among buyers. While the median home value is low, these factors indicate a stable but slow-moving real estate market.
Tenant demand in ZIP 46320 is strong, given a population of 14,353 and a renter share of 58.8%. With nearly 60% of residents renting, there is a significant pool of potential tenants who may be interested in Section 8 housing. This high percentage of renters supports the idea that there is sufficient demand for rental properties.
In summary, while the rent math does not favor landlords due to the disparity between FMR and market rent, the acquisition costs are reasonable. The presence of a large renter base suggests robust tenant demand, making ZIP 46320 a viable investment for those willing to accept the lower rental income from Section 8 vouchers. Landlords should carefully consider their financial goals and the local market dynamics before investing in this area.
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.