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 | $1,050 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,630 |
| 4 Bedrooms | $1,780 |
| 5 Bedrooms | $2,065 |
| 6 Bedrooms | $2,313 |
| 7 Bedrooms | $2,498 |
| 8 Bedrooms | $2,623 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,630 | $187,332 | 0.87% | C |
U.S. Census Bureau data (2024)
The investment landscape in ZIP code 46376 for Section 8 properties presents several challenges that landlords must consider. First, tenant turnover could be a significant issue due to the difference between the market rent of $1,125 and the Fair Market Rent (FMR) of $1,170 for FY 2024. This discrepancy might lead to higher churn rates if tenants find it difficult to maintain their housing costs.
Vacancy exposure is another critical risk factor. The average number of days on the market (DOM) is currently unavailable, which suggests potential unpredictability regarding how long a property might remain vacant. In a market where rental rates are competitive, landlords could face extended periods without income, especially if they rely heavily on Section 8 tenants.
Deferred maintenance poses a threat as well. With a typical home value of $177,327 and a median income of $64,205, homeowners may struggle to keep up with necessary repairs and upgrades. This can result in higher maintenance costs for landlords who inherit properties in need of work.
However, these risks are tempered by the high concentration of renters in the area. ZIP 46376 has a 14.2% renter share, indicating a robust demand for rental properties. High renter density often translates into greater interest in Section 8 vouchers, providing a stable tenant pool and consistent rental income.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.