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 | $1,120 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,430 |
| 3 Bedrooms | $1,740 |
| 4 Bedrooms | $1,900 |
| 5 Bedrooms | $2,204 |
| 6 Bedrooms | $2,468 |
| 7 Bedrooms | $2,665 |
| 8 Bedrooms | $2,798 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,430 | $187,797 | 0.76% | D |
| 3BR | $1,740 | $241,935 | 0.72% | D |
| 4BR | $1,900 | $317,706 | 0.6% | F |
| 5BR | $2,204 | $356,160 | 0.62% | D |
U.S. Census Bureau data (2024)
In Hobart, Indiana (ZIP 46342), the real estate market presents a nuanced picture that is particularly relevant for landlords and small-portfolio investors. The median home value stands at $234,707, which indicates a stable housing market. This stability is further reinforced by the fact that only 0.3% of listings have seen reductions in price, suggesting that sellers maintain significant pricing power. With a median Days on Market (DOM) of 32 days, properties are moving relatively quickly, implying strong demand and a healthy pace of transactions.
The combination of these factors—median home value, minimal price reductions, and quick sales—signals that landlords and investors can expect to hold onto their rental properties without needing to adjust rents significantly downward. In fact, the setup suggests that maintaining current rent levels or even slightly increasing them could be feasible given the underlying strength of the housing market.
On the rent side, the Federal Market Rent (FMR) for ZIP 46342 in fiscal year 2024 is projected to be $1,280, while the current market rent (ZORI) is $1,287. This slight difference between the two metrics points to a market where rents are closely aligned with government standards, providing a predictable environment for setting rental rates. Investors should expect that the current rental landscape will remain fairly consistent, with modest growth potential as the broader housing market stabilizes.
For long-term holding investors, the data imply a cautious approach to expectations of rapid appreciation. While the median home value is stable and the market shows signs of resilience, the minimal percentage of price reductions and the relatively short DOM suggest that while there is pricing power, it may not translate into substantial increases in property values over the next 12-24 months. Instead, the setup supports a strategy focused on steady cash flow from rental income rather than significant capital appreciation.
In summary, the median home value, low percentage of price reductions, and quick sales times in Hobart, IN, indicate a market where landlords and small-portfolio investors can maintain their pricing power and current rent levels. However, the appreciation thesis is modest, favoring a focus on rental income stability over rapid property value growth.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.