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 | $1,160 |
| 1 Bedroom | $1,220 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $1,800 |
| 4 Bedrooms | $1,970 |
| 5 Bedrooms | $2,285 |
| 6 Bedrooms | $2,559 |
| 7 Bedrooms | $2,764 |
| 8 Bedrooms | $2,902 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,480 | $210,509 | 0.7% | D |
| 3BR | $1,800 | $264,777 | 0.68% | D |
| 4BR | $1,970 | $347,348 | 0.57% | F |
| 5BR | $2,285 | $358,288 | 0.64% | D |
U.S. Census Bureau data (2024)
The rent math in ZIP 46368 does not work favorably for landlords participating in the Section 8 program. The Fair Market Rent (FMR) set at $1250 for fiscal year 2024 is significantly below the market rent, which stands at $1,478 according to ZORI (Zillow Observed Rent Index). This means that landlords might face a shortfall of $228 per unit each month if they rely solely on the Section 8 subsidy.
Acquisition of properties in this area is relatively affordable. The median home value is $269,416, indicating that homes are not excessively priced. With an average of 31 days on the market (DOM), properties are turning over reasonably quickly, suggesting a healthy pace of sales. Additionally, the low 0.2% price-cut share indicates that sellers are generally not having to reduce their asking prices, further supporting the affordability of acquisitions.
Tenant demand in ZIP 46368 is present but not overwhelming. The total population of 40,301 includes a substantial 26.6% renter share, translating to approximately 10,728 renters. However, this demand must be weighed against the discrepancy between market rents and FMRs, which could make it challenging to find tenants willing to accept the lower subsidy rates.
In conclusion, while the acquisition of properties in ZIP 46368 is affordable with a median home value of $269,416 and quick turnover times, the rent math does not work well due to the significant gap between the FMR of $1250 and the actual market rent of $1,478. Despite the presence of tenant demand, landlords should be cautious about relying solely on Section 8 subsidies, as they may struggle to cover costs at the current FMR levels.
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.