Section 8 Fair Market Rent (FMR) for ZIP 46321 - 2027
Location: Gary, IN | Metro: Gary, IN HUD Metro FMR Area
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $1,470 |
| 1 Bedroom | $1,550 |
| 2 Bedrooms | $1,880 |
| 3 Bedrooms | $2,290 |
| 4 Bedrooms | $2,500 |
| 5 Bedrooms | $2,900 |
| 6 Bedrooms | $3,248 |
| 7 Bedrooms | $3,508 |
| 8 Bedrooms | $3,683 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$110,187
Housing Authorities Serving ZIP 46321
A decision tree for ZIP 46321 (Munster, IN) regarding Section 8 investments involves several key considerations:
- Does the Fair Market Rent (FMR) of $1,530 cover the debt service on a property valued at $347,652?
- Yes: The FMR in Munster, IN, for fiscal year 2024 is set at $1,530. This amount is typically sufficient to cover the debt service on a property of that value, making it a viable option for Section 8 landlords.
- No: If the debt service exceeds $1,530 per month, then the FMR will not be adequate to cover your costs, and you should consider other areas where FMRs are higher.
- Is the market rent ($2,376 ZORI) above, at, or below the FMR?
- Above: The ZORI (Zillow's estimate of the average monthly rent) is $2,376, which is significantly above the FMR of $1,530. This means that Section 8 tenants would likely pay less than what the market demands, reducing potential rental income.
- At: Not applicable in this case since the ZORI is above the FMR.
- Below: Also not applicable, but if the ZORI were below the FMR, it would suggest that Section 8 rents might be competitive with market rates.
- Are 13.0% of residents renters and the 62-day DOM (days on market) indicative of enough demand?
- It Depends: With 13.0% of residents being renters, the demand for rental properties is moderate. A 62-day DOM suggests that while properties do take some time to rent, they are still moving off the market relatively quickly compared to longer periods. However, the success of a Section 8 investment also depends on the number of vouchers available and the willingness of tenants to use them in this area.
In conclusion, for ZIP 46321, the FMR adequately covers the debt service on a property valued at $347,652. However, the market rent being higher than the FMR indicates that Section 8 properties may yield lower returns compared to market-rate rentals. Lastly, the moderate rental population and relatively quick rental times suggest reasonable demand, though the availability of Section 8 vouchers and tenant preferences must be factored into your decision.
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.