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 | $1,260 |
| 1 Bedroom | $1,320 |
| 2 Bedrooms | $1,610 |
| 3 Bedrooms | $1,960 |
| 4 Bedrooms | $2,140 |
| 5 Bedrooms | $2,482 |
| 6 Bedrooms | $2,780 |
| 7 Bedrooms | $3,002 |
| 8 Bedrooms | $3,152 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,610 | $262,395 | 0.61% | D |
| 3BR | $1,960 | $357,520 | 0.55% | F |
| 4BR | $2,140 | $458,399 | 0.47% | F |
| 5BR | $2,482 | $525,726 | 0.47% | F |
U.S. Census Bureau data (2024)
Schererville, IN, located in ZIP code 46375, is a suburban community with a total population of 24,188 residents. Approximately 17.0% of the residents are renters, indicating a predominantly owner-occupied area. The median household income stands at $93,160, which is relatively high compared to national averages, suggesting a prosperous environment. Median home values in the area are robust, sitting at $352,716, reflecting the stable housing market and desirability of the location.
The rent economics in Schererville present an interesting opportunity for investors. The Fair Market Rent (FMR), which is the amount set by the Department of Housing and Urban Development for Section 8 vouchers, is $1410 for the fiscal year 2024. In contrast, the market rent, measured by the Zillow Observed Rent Index (ZORI), is significantly higher at $2,023. This gap highlights a potential challenge for hands-off voucher operators who might find it difficult to cover market rents with the Section 8 subsidy alone.
Given these economic conditions, Schererville appears to be better suited for hands-on value-add buyers rather than passive investors. These active investors can leverage the high median income and market rents to implement strategies that increase property value and rental yields. For instance, they could focus on improving the quality of rental units to justify higher rents, or they could target the non-voucher renting segment where market rates are substantially higher.
In summary, while the Section 8 voucher program offers a steady stream of tenants, the financial dynamics in Schererville suggest that active management and strategic improvements are necessary to achieve optimal returns. Passive investors should carefully consider the limitations posed by the FMR versus the actual market rents before committing to this area.
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.