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 | $960 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,230 | $177,126 | 0.69% | D |
| 3BR | $1,500 | $213,962 | 0.7% | D |
| 4BR | $1,630 | $238,385 | 0.68% | D |
| 5BR | $1,891 | $265,309 | 0.71% | D |
U.S. Census Bureau data (2024)
A landlord considering investing in ZIP code 46394 (Whiting, IN) for Section 8 properties must follow a structured decision-making process. The analysis hinges on three key factors: Fair Market Rent (FMR), market rent, and rental demand.
1) Does the FMR of $1130 cover the debt service on a property valued at $200,640?
To determine if the FMR can cover the debt service, we need to calculate the monthly mortgage payment based on typical financing terms. Assuming a 30-year fixed-rate mortgage at an average interest rate of 5%, the monthly mortgage payment would be approximately $1,075. Given that the FMR is $1130, it does indeed exceed the debt service requirement by $55 per month. This answers the first question with a Yes.
2) How does the market rent ($1,325 ZORI) compare to the FMR?
The market rent in Whiting, IN, is higher than the FMR at $1,325 compared to $1130. This indicates that landlords could potentially charge more than the FMR for their units. However, it also means that tenants with Section 8 vouchers might find it challenging to cover the difference between the FMR and the actual market rent. This situation leads to an It Depends scenario, where landlords must weigh the benefits of higher rents against the risk of lower occupancy rates due to voucher holders' inability to cover the additional costs.
3) Is there sufficient rental demand given 34.8% of residents are renters and the days on market (DOM) is not available?
The rental market in Whiting, IN, comprises 34.8% of the population, which suggests a moderate level of demand. However, without knowing the DOM, it's difficult to assess how quickly properties are rented out. If the DOM is low, indicating fast turnover, then the demand is likely robust. Conversely, high DOM values would suggest weaker demand. Based on the available data, the answer to this question is It Depends.
Decision Tree Summary:
Ultimately, a landlord should consider these factors carefully before deciding to invest in Whiting, IN. The ability to cover debt service with FMR is positive, but the higher market rent and unknown DOM create uncertainty about the long-term viability and occupancy rates of Section 8 properties.
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.