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 | $980 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $1,840 |
| 5 Bedrooms | $2,134 |
| 6 Bedrooms | $2,390 |
| 7 Bedrooms | $2,581 |
| 8 Bedrooms | $2,710 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,280 | $240,434 | 0.53% | F |
| 3BR | $1,570 | $316,775 | 0.5% | F |
| 4BR | $1,840 | $357,518 | 0.51% | F |
U.S. Census Bureau data (2024)
A decision tree for evaluating whether to purchase properties in ZIP code 46382 (Union Mills, IN) for Section 8 investment requires careful analysis of several key factors.
Step 1: Determine if the Fair Market Rent (FMR) of $1070 can cover the debt service on a property valued at $292,316. The FMR must be sufficient to ensure that rental income meets or exceeds mortgage payments and other expenses associated with owning the property. In Union Mills, IN, the FMR does not clear the debt service on a property of this value, making it an unattractive option for Section 8 landlords based solely on this criterion.
Step 2: Compare the FMR to the market rent. For ZIP 46382, the market rent data is currently unavailable. Without this information, it's impossible to determine if the FMR is above, at, or below market rates. This lack of data makes it difficult to assess the competitiveness of Section 8 rents in this area.
It Depends: Since the market rent is N/A, the decision hinges on the availability of alternative data sources or estimations that could provide insight into local rental trends. If you find supplementary data indicating that market rents are significantly higher than the FMR, then the answer could shift towards a cautious yes, but only if the demand for rentals is also strong.
Step 3: Evaluate the demand for rentals by looking at the percentage of renters and the days on market (DOM). In Union Mills, IN, there are no renters recorded (0.0%), and the DOM data is also not available. This suggests a low demand for rentals in the area, which would typically discourage investment in Section 8 properties.
No: Given the current data, there is insufficient evidence to support buying properties in ZIP 46382 for Section 8. The FMR does not clear the debt service, and the rental market appears weak with no active renters and missing DOM data. These conditions indicate a challenging environment for generating consistent rental income through Section 8.
If you're considering investing in this ZIP code, further research into local rental trends and potential changes in the housing market is recommended before making any decisions.
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.