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 | $940 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,200 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,200 | $227,494 | 0.53% | F |
| 3BR | $1,460 | $322,579 | 0.45% | F |
| 4BR | $1,590 | $413,150 | 0.38% | F |
U.S. Census Bureau data (2024)
Lake Village, IN, located in ZIP code 46349, is a small suburban neighborhood with a total population of 3,416 residents. Only 25.9% of the residents are renters, indicating a predominantly owner-occupied community. The median household income in this area is strong at $82,306, suggesting a relatively affluent population. The median home value stands at $314,585, which reflects the high cost of living and the desirability of the area.
The economic landscape for rental properties in ZIP 46349 is intriguing. According to the latest data, the Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,200, which is significantly higher than the average market rent of $743 reported by the Census Bureau's American Community Survey (ACS). This disparity highlights an opportunity for landlords and investors who can position their properties to attract Section 8 tenants, as they may be able to command rents closer to the FMR level.
Given these conditions, ZIP 46349 would likely appeal more to hands-on value-add buyers rather than hands-off operators. The potential for higher rents through Section 8 contracts suggests that active management could yield better returns. Landlords who are willing to invest in property improvements and comply with the requirements for accepting Section 8 vouchers will find themselves well-positioned to capitalize on the difference between market rent and the FMR. For those looking to enter the market with minimal effort, the low percentage of renters and the overall affluence of the neighborhood might make it less attractive, as the demand for subsidized housing is lower compared to other areas.
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.