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 | $980 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,260 | $52,260 | 2.41% | A+ |
| 3BR | $1,530 | $63,271 | 2.42% | A+ |
| 4BR | $1,670 | $80,220 | 2.08% | A+ |
U.S. Census Bureau data (2024)
The dynamics of the ZIP 46402 market in Gary, Indiana, reveal a scenario where demand closely follows supply, but leans slightly towards favoring renters. The Fair Market Rent (FMR) for the area stands at $1010 for fiscal year 2024, while the Zillow Observed Rent Index (ZORI) indicates a market rent of $1,200. This suggests that landlords can charge a premium above the government's benchmark, though the gap is modest, indicating a balanced market.
A 0.2% price-cut share signifies that very few listings are being discounted, implying that rental properties are generally priced to attract tenants without significant concessions. The median home value of $66,890 is notably low, reflecting the overall affordability of the housing market in this region. However, the lack of data on days on market (DOM) means we cannot conclusively determine the speed at which properties are rented out or sold.
The 56.6% renter share is a critical indicator of long-term housing pressure. With over half of the residents renting their homes, there is sustained demand for rental units, which creates a continuous need for landlords and small-portfolio investors to maintain and possibly improve their properties to remain competitive. This high percentage of renters also points to a potential challenge in homeownership, suggesting that many residents may find it difficult to transition into owning a home due to financial constraints or other factors.
In summary, ZIP 46402 presents a market where the balance between supply and demand is tight, with a slight edge towards the needs of renters. Landlords should focus on maintaining quality and pricing competitively to attract tenants in this environment. The high renter share underscores the importance of rental properties in the local economy and the ongoing need for them to meet the housing demands of the population.
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.