Location: Michigan City-La Porte, IN | Metro: Michigan City-La Porte, IN MSA
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 | $900 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,160 | $121,992 | 0.95% | C |
| 3BR | $1,420 | $171,361 | 0.83% | C |
U.S. Census Bureau data (2024)
The analysis of ZIP code 46346, located in Kingsford Heights, IN within the Michigan City-La Porte, IN MSA metro area, reveals key insights for potential landlords and small-portfolio investors.
The rent math does not work in favor of landlords. The Fair Market Rent (FMR) set at $960 for fiscal year 2024 is higher than the actual market rent of $889 based on Census ACS data. This suggests that landlords aiming to meet the FMR may struggle to find tenants willing to pay the higher rate, leading to potential vacancy issues.
Acquisition in this area is relatively affordable. With a median home value of $162,271, it represents a good entry point for investors looking to purchase properties without incurring excessive costs. However, the lack of data on days on market (DOM) and the percentage of homes needing price cuts indicates an incomplete picture of the local real estate market's liquidity and pricing flexibility.
Tenant demand is present but limited. The ZIP code has a population of 1,358, with 40.1% of residents being renters. This implies a moderate pool of potential tenants, though the small size of the population could make competition among rental properties intense.
In conclusion, while the acquisition cost is reasonable, the discrepancy between FMR and market rent poses a challenge for achieving desired rental income levels. The modest tenant demand suggests that maintaining occupancy will require competitive pricing and possibly additional amenities or services. Landlords should proceed with caution, focusing on property management efficiency and market positioning to succeed in this ZIP code.
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.