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 | $950 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,220 | $100,950 | 1.21% | A |
| 3BR | $1,480 | $176,630 | 0.84% | C |
| 4BR | $1,620 | $258,801 | 0.63% | D |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP 46403, Gary, IN, reveals a nuanced scenario that both landlords and small-portfolio investors should consider. The median home value stands at $148,334, indicating a relatively affordable market. However, the fact that only 0.2% of listings have reduced their prices suggests a firm hold on pricing power by sellers. This is further supported by the absence of data regarding the median days on market (DOM), which could imply either rapid sales or a lack of sufficient recent transactions to establish a trend. Both of these factors point towards a stable pricing environment where landlords can maintain rental rates without significant downward pressure.
On the rental side, the Federal Market Rent (FMR) for fiscal year 2024 is set at $1,100, while the actual Zillow Observed Rent Index (ZORI) is higher at $1,213. This discrepancy signals that the market rent exceeds government-subsidized rates, which could impact Section 8 landlords. Given the higher market rent, landlords may find it challenging to attract tenants who are solely reliant on Section 8 vouchers, potentially leading to a mix of subsidized and market-rate rentals to maintain occupancy levels.
For long-term investors, the setup in ZIP 46403 implies limited appreciation potential. With the median home value remaining steady and a low percentage of price reductions, there is little evidence of rapid growth in property values. Instead, the focus should be on maintaining consistent cash flows through rental income rather than expecting substantial capital gains. Investors should also be aware of the competitive nature of the rental market, where market rates are higher than the FMR, and plan accordingly to balance between attracting tenants and maximizing returns.
In summary, the current data points toward a stable market with moderate pricing power for landlords and limited appreciation prospects for long-term investors. Maintaining rental rates above the FMR but below market levels will be key to balancing tenant acquisition with profitability. Landlords should prepare for a market where they must adapt to the realities of subsidized housing while leveraging opportunities in the broader rental market.
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.