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 | $880 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,130 | $229,083 | 0.49% | F |
| 3BR | $1,400 | $314,923 | 0.44% | F |
| 4BR | $1,530 | $374,294 | 0.41% | F |
U.S. Census Bureau data (2024)
The ZIP code 46347, which includes Kouts and Gary, IN within the HUD Metro FMR Area, presents itself as a strong candidate for inclusion in a Section 8 portfolio strategy. This area should be considered a cash-flow anchor due to the significant spread between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR for ZIP 46347 is set at $1250, while the current market rent stands at $748. This means that landlords participating in the Section 8 program can expect to receive a higher rent subsidy compared to what they would typically collect in the open market, thereby ensuring stable and predictable cash flows.
The median home value in ZIP 46347 is $314,397, indicating a relatively stable housing market. However, the primary focus for Section 8 landlords should be on the rental aspect, where the $1250 FMR provides a substantial cushion against market fluctuations. The price-cut share and days on market (DOM) figures are not applicable here, as they pertain more to the buying and selling dynamics of homes rather than the rental market. Therefore, this ZIP cannot be classified as an appreciation play based on the given data.
ZIP 46347 also serves as a diversifier within a broader investment portfolio. With a 9.2% renter share, there is a notable portion of the population relying on rental properties, making it a viable market for rental investments. Additionally, the median income of $95,348 suggests that tenants are likely to have the financial stability needed to maintain consistent rent payments, further supporting the idea that this area is suitable for diversifying a landlord's investment strategy.
In conclusion, ZIP 46347 is best positioned as a cash-flow anchor in a Section 8 portfolio strategy. The high FMR relative to the market rent ensures that landlords will receive a steady stream of income, protected from the natural volatility of the housing market. This makes it an attractive option for those seeking reliable returns on their rental investments.
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.