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 | $1,230 |
| 2 Bedrooms | $1,490 |
| 3 Bedrooms | $1,810 |
| 4 Bedrooms | $1,980 |
| 5 Bedrooms | $2,297 |
| 6 Bedrooms | $2,573 |
| 7 Bedrooms | $2,779 |
| 8 Bedrooms | $2,918 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,490 | $322,838 | 0.46% | F |
| 3BR | $1,810 | $410,595 | 0.44% | F |
| 4BR | $1,980 | $521,945 | 0.38% | F |
| 5BR | $2,297 | $703,014 | 0.33% | F |
U.S. Census Bureau data (2024)
The potential downsides for investing in Section 8 housing in ZIP code 46373 in Saint John, IN, include significant tenant turnover due to the disparity between the market rent of $981 and the Fair Market Rent (FMR) of $1180 for fiscal year 2024. This discrepancy can lead to frequent vacancies, which are further exacerbated by a 27-day days on market (DOM), indicating a slow absorption rate for rental properties. Additionally, there is a notable risk of deferred maintenance costs, given that the typical home value in the area is $448,528 while the median household income stands at $127,146. These financial constraints might limit the ability of homeowners to invest in timely repairs and upkeep, potentially leading to higher maintenance expenses for landlords.
However, these risks must be weighed against the fact that the renter share of the population in ZIP 46373 is 2.9%, a relatively high percentage. High renter density often translates into a greater demand for rental properties, including those utilizing Section 8 vouchers. This increased demand can stabilize occupancy rates and mitigate some of the risks associated with tenant turnover and vacancy exposure.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 46373 is moderate.
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.