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 | $1,210 |
| 1 Bedroom | $1,280 |
| 2 Bedrooms | $1,550 |
| 3 Bedrooms | $1,890 |
| 4 Bedrooms | $2,060 |
| 5 Bedrooms | $2,390 |
| 6 Bedrooms | $2,677 |
| 7 Bedrooms | $2,891 |
| 8 Bedrooms | $3,036 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,550 | $229,317 | 0.68% | D |
| 3BR | $1,890 | $278,632 | 0.68% | D |
| 4BR | $2,060 | $333,168 | 0.62% | D |
| 5BR | $2,390 | $376,598 | 0.63% | D |
U.S. Census Bureau data (2024)
The ZIP code 46322 is situated in Highland, IN, a part of Lake County. With a total population of 23,680, this neighborhood stands out due to its relatively low rental rate compared to ownership. Only 21.6% of residents are renters, indicating a preference for homeownership among the populace. The median household income in the area is $78,062, which suggests a moderate level of financial stability among its inhabitants. The median home value is $263,909, reflecting a reasonable cost for homeownership in Highland.
Moving into the specifics of rental economics, the Fair Market Rent (FMR) for ZIP 46322 in fiscal year 2024 is set at $1,490. This figure is notably lower than the market rent, which is estimated at $1,593 based on Zillow's Observed Rental Index (ZORI). The gap between these two rates implies a potential challenge for landlords participating in the Section 8 program, as they must balance the subsidy rate against the market demand and competition for rental properties.
Given these conditions, ZIP 46322 is better suited for a hands-on value-add buyer rather than a hands-off voucher operator. Landlords who are willing to invest in property improvements and actively manage their units can potentially attract higher-paying tenants and increase their overall profitability. Meanwhile, those who rely solely on the Section 8 program might find themselves at a disadvantage due to the limited subsidy compared to the actual market rent.
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.