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 | $1,130 |
| 1 Bedroom | $1,190 |
| 2 Bedrooms | $1,450 |
| 3 Bedrooms | $1,760 |
| 4 Bedrooms | $1,930 |
| 5 Bedrooms | $2,239 |
| 6 Bedrooms | $2,508 |
| 7 Bedrooms | $2,709 |
| 8 Bedrooms | $2,844 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,450 | $166,200 | 0.87% | C |
| 3BR | $1,760 | $195,249 | 0.9% | C |
| 4BR | $1,930 | $224,288 | 0.86% | C |
| 5BR | $2,239 | $253,372 | 0.88% | C |
U.S. Census Bureau data (2024)
32.0% of residents in ZIP 46324 (Hammond, IN) are renters, indicating a significant portion of the population relies on rental housing. This statistic supports the viability of rental properties in the area. The Fair Market Rent (FMR) for the zip code in fiscal year 2024 is set at $1320, which is notably lower than the Zillow Observed Rent Index (ZORI) of $1,452, suggesting landlords can potentially charge above the FMR without losing tenants. However, this also implies a competitive market where landlords might have to offer amenities or maintain high standards to attract and retain renters.
The median home value in ZIP 46324 is $176,835, reflecting a relatively affordable market for both homeowners and investors looking to purchase properties. Given the median income of $63,052, many residents may find it challenging to afford homeownership, further emphasizing the demand for rental units. Despite the affordability, only 0.2% of listings in the area have been price-cut, which is a very low percentage. This indicates that property values are stable and that landlords and small-portfolio investors can expect consistent returns without frequent adjustments to rental rates.
Investors considering Section 8 participation should note the discrepancy between the FMR and the ZORI. While the FMR is lower, the higher ZORI suggests that there is room to negotiate slightly above the FMR with the local housing authority. However, the decision to participate in Section 8 should be made with an understanding of the administrative requirements and the potential for longer-term tenancy stability.
Verdict: ZIP 46324 presents a balanced opportunity for landlords and small-portfolio investors, with a strong rental market and stable property values, making it suitable for Section 8 participation with careful negotiation of rental rates.
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.