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 | $900 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,150 | $49,572 | 2.32% | A+ |
| 3BR | $1,400 | $65,263 | 2.15% | A+ |
| 4BR | $1,530 | $81,806 | 1.87% | A+ |
U.S. Census Bureau data (2024)
The classification of ZIP 46407, located in Gary, Indiana, hinges on a balance between yield and stability. On the yield axis, the Fair Market Rent (FMR) for the fiscal year 2024 stands at $1070, which is notably lower than the market rent of $1,257. This suggests that properties in this area can be rented out at rates slightly above the FMR, potentially providing a decent cash flow for landlords. However, the median home value of $57,632 indicates that the overall investment cost is relatively low, which could amplify the yield when considering the total investment made.
Moving to the stability axis, the rental market appears moderately stable with 58.8% of residents being renters. While this percentage is significant, it lacks the robustness needed for high stability, often seen in areas where renter occupancy exceeds 60%. The absence of data on the number of days on market (DOM) makes it challenging to assess how quickly units turn over, which is a key indicator of market stability. Lastly, the average income of $28,526 is below the national average, which might affect tenants' ability to pay higher rents consistently.
Based on these figures, ZIP 46407 leans towards being a steady-cashflow zone rather than a high-yield/low-stability market. The potential for flipping properties to capitalize on short-term gains is limited due to the moderate rental occupancy rate and lower average income. Instead, landlords and small-portfolio investors can expect a consistent but not exceptionally high yield from their investments. The combination of a reasonable rental price above the FMR and a low median home value supports a model where properties generate reliable income without the risks associated with highly volatile markets.
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.