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 | $1,450 |
| 1 Bedroom | $1,550 |
| 2 Bedrooms | $1,870 |
| 3 Bedrooms | $2,290 |
| 4 Bedrooms | $2,650 |
| 5 Bedrooms | $3,074 |
| 6 Bedrooms | $3,443 |
| 7 Bedrooms | $3,718 |
| 8 Bedrooms | $3,904 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,870 | $227,414 | 0.82% | C |
| 3BR | $2,290 | $325,168 | 0.7% | D |
| 4BR | $2,650 | $395,570 | 0.67% | D |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 46371 reveals that the HUD Fair Market Rent (FMR) of $1170 for fiscal year 2024 is significantly lower than the average market rent of $2095. This comparison indicates that landlords would only achieve positive cash flow with voucher tenants if they focus on premium units or if they manage to negotiate higher rents within the voucher program's guidelines. The median home value in this area is $308,729, which translates into a rent-to-price ratio of approximately 0.7%, suggesting that rental income alone may not fully justify the investment in property values.
The data does not provide the median days on market (DOM) or the percentage of price cuts shared, but these metrics would be relevant for understanding the rent-versus-buy dynamics. If the DOM is high and the percentage of price cuts is significant, it could indicate a challenging environment for selling homes, thereby making rentals a more attractive option.
The strongest investor angle in ZIP 46371 is likely stability. Given the discrepancy between the HUD FMR and the market rent, investors can expect consistent occupancy rates with voucher tenants, ensuring steady cash flow despite the lower rents. Stability is crucial for long-term investment strategies, particularly in areas where appreciation is moderate and cash flow is dependent on premium unit management.
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.