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 | $1,160 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,490 |
| 3 Bedrooms | $1,810 |
| 4 Bedrooms | $1,980 |
| 5 Bedrooms | $2,297 |
| 6 Bedrooms | $2,573 |
| 7 Bedrooms | $2,779 |
| 8 Bedrooms | $2,918 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,490 | $60,304 | 2.47% | A+ |
| 3BR | $1,810 | $87,773 | 2.06% | A+ |
| 4BR | $1,980 | $111,182 | 1.78% | A+ |
U.S. Census Bureau data (2024)
The rent math in ZIP 46409, located in Gary, IN, within the Gary, IN HUD Metro FMR Area, is nearly balanced but leans slightly unfavorable for landlords. The Fair Market Rent (FMR) set at $1350 for FY 2024 is just above the market rent indicated by ZORI at $1,333. This means that while rents can be set close to the FMR, they must be competitive to attract tenants.
Acquisition in this area is relatively affordable. The median home value stands at $79,181, which is a manageable figure for potential investments. However, the lack of data on days on market (DOM) and the low 0.3% price-cut share suggest that homes might sell quickly without significant negotiation, indicating a stable but not highly volatile market.
Tenant demand is present, though not overwhelming. With a total population of 7,184 and 55.5% of residents being renters, there is a substantial base of potential tenants. This high renter share points towards a market where rental properties can be filled, supporting ongoing occupancy.
Verdict: While the rent math in ZIP 46409 is close to being favorable, the slight edge in favor of market rents means landlords must be diligent in maintaining competitive pricing. Acquisition costs are reasonable, with the median home value offering a good entry point for investment. Tenant demand is strong enough to support rental operations, thanks to the majority of residents being renters. Overall, ZIP 46409 presents a viable opportunity for landlords and small-portfolio investors, contingent upon careful management of rental pricing and property maintenance.
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.