Section 8 Fair Market Rent (FMR) for ZIP 46350 - 2027

Investment Score for ZIP 46350

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$960
1 Bedroom	$1,030
2 Bedrooms	$1,240
3 Bedrooms	$1,520
4 Bedrooms	$1,750
5 Bedrooms	$2,030
6 Bedrooms	$2,274
7 Bedrooms	$2,456
8 Bedrooms	$2,579

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,030	$160,657	0.64%	D
2BR	$1,240	$197,759	0.63%	D
3BR	$1,520	$284,503	0.53%	F
4BR	$1,750	$359,821	0.49%	F
5BR	$2,030	$417,651	0.49%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 46350 (La Porte, IN) #### Section 8 Voucher Dynamics In ZIP code 46350, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $1,140 per month for 2026. This figure represents approximately 18.4% of the median household income in the area, which stands at $74,307. However, the actual rental market in La Porte, IN, tends to be significantly higher. According to Zillow, the median price for a two-bedroom home is $190,975, translating to a monthly rent of around $1,440 based on a typical mortgage payment. The price-to-FMR ratio is 14.0x, indicating that actual rents are much higher than the FMR. This discrepancy means that tenants using Section 8 vouchers face significant constraints. They can only afford units priced at or below the FMR, which is far lower than the actual market rates. Consequently, voucher holders might struggle to find suitable housing, especially in a competitive market where landlords may prefer paying tenants who can afford higher rents. #### Affordability & Renter Profile The population of La Porte County is 44,763, with 23.9% of residents being renters. Given that the occupancy rate is 90.0%, it suggests that the rental market is relatively tight, with limited availability of units. The median household income of $74,307 indicates that the area has a moderate economic profile, but the high price-to-FMR ratio implies that the rental market is not particularly affordable for low-income families. The affordability gap is evident when comparing the FMR to the actual market rents. A two-bedroom unit priced at $1,140 would be considered very affordable, but the reality is that most units are priced much higher. This makes it challenging for low-income renters to find housing that fits their budget, especially those relying on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 46350 presents a mixed picture. While the rental market is robust, with a high occupancy rate and a relatively tight supply, the actual rents are substantially higher than the FMR. For instance, a two-bedroom unit renting at $1,440 would be well above the $1,140 FMR limit for Section 8 vouchers. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the potential income versus expenses. If an investor were to purchase a two-bedroom property at the median price of $190,975 and rent it out at the FMR of $1,140, they would likely face financial challenges. The typical mortgage payment for a property costing $190,975 would be around $1,440, based on a 30-year fixed-rate mortgage at a 5% interest rate. This means that even if the property could be rented at the FMR, the investor would not cover the mortgage payment, let alone other expenses such as maintenance, insurance, and property taxes. Given these factors, the investment grade for properties in ZIP 46350 would be relatively low for Section 8-focused investors. The high price-to-FMR ratio and the difficulty in finding tenants willing to pay market rates make it less attractive compared to areas where the FMR aligns more closely with actual rents. #### Specific Actionable Insights 1. **Focus on Lower-Rent Units**: Investors should focus on acquiring properties that can be rented at or below the FMR. For example, a one-bedroom unit renting at $940 would be more aligned with the FMR limits and potentially more viable for Section 8 tenants. This approach would help ensure that the property remains affordable and attractive to voucher holders. 2. **Consider Alternative Rental Programs**: Given the high actual rents and the low FMR, investors might want to explore alternative rental assistance programs that have higher income limits or different rent structures. This could include state-specific housing assistance programs or other federal programs that offer higher subsidy caps. 3. **Target Underserved Neighborhoods**: Within ZIP 46350, there may be neighborhoods where rents are closer to the FMR. Investors should conduct detailed neighborhood analyses to identify areas where the rental market is more aligned with the FMR. This could involve looking at older, less desirable properties that are more likely to rent at lower rates. #### Bottom Line Based on the provided data, the recommendation for Section 8-focused investors in ZIP code 46350 is to **skip** this market. The high price-to-FMR ratio and the tight rental market make it difficult to find properties that can be rented profitably while still meeting the FMR requirements. Investors should look for markets where the FMR is closer to the actual rental prices, ensuring better alignment between tenant affordability and landlord profitability. --- This analysis provides a comprehensive overview of the rental market dynamics in ZIP 46350, focusing specifically on how Section 8 vouchers interact with the local rental environment. The insights are drawn directly from the provided data, offering a clear and actionable assessment for investors considering this market.

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.