Section 8 Fair Market Rent (FMR) for ZIP 46377 - 2027

Location: Gary, IN | Metro: Gary, IN HUD Metro FMR Area

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,200
1 Bedroom	$1,270
2 Bedrooms	$1,540
3 Bedrooms	$1,870
4 Bedrooms	$2,050
5 Bedrooms	$2,378
6 Bedrooms	$2,663
7 Bedrooms	$2,876
8 Bedrooms	$3,020

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

Median Household Income

$38,958

Housing Units

Renter Percentage

40.0%

Occupancy Rate

100.0%

Renter Occupied

A landlord considering ZIP 46377 for Section 8 investment must follow a structured decision-making process based on the following criteria:

Step 1: Debt Service Coverage Ratio (DSCR)

If the Fair Market Rent (FMR) of $1440 per month for ZIP 46377 in fiscal year 2024 does not cover the debt service on a property valued at $184,785, then the answer is No. The DSCR must be at least 1 to ensure that rental income can meet the mortgage payments.

Step 2: Market Rent vs. FMR

If market rent is N/A, meaning there is no available data, it's impossible to determine if market rents are above, at, or below the FMR. In this case, the answer is It Depends. Landlords will need to conduct further research to understand local market conditions and rent levels.

Step 3: Rental Demand

If the rental demand in ZIP 46377 is characterized by 40.0% of the population being renters and the days on market (DOM) is N/A, the answer is It Depends. A 40% rental rate suggests moderate demand, but without knowing the DOM, it's unclear how quickly properties are rented out. High DOM could indicate low demand despite the percentage of renters.

To summarize, the decision to invest in ZIP 46377 for Section 8 properties hinges on whether the FMR sufficiently covers the debt service, the comparison between market rent and FMR, and the strength of rental demand. With incomplete market rent data and unknown DOM, the primary gating factor is the FMR's ability to support the debt service. If it does, proceed to investigate market rent and DOM to make an informed decision.

Data Sources: FMR data from HUD (2027). 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.