Section 8 Fair Market Rent (FMR) for ZIP 46410 - 2027

Location: Gary, IN | Metro: Gary, IN HUD Metro FMR Area

Investment Score for ZIP 46410

Monthly Rent (2BR)

$1,760

Median Price (2BR)

$206,891

1% Rule

0.85%

Annual Yield

10.21%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,380
1 Bedroom	$1,450
2 Bedrooms	$1,760
3 Bedrooms	$2,140
4 Bedrooms	$2,340
5 Bedrooms	$2,714
6 Bedrooms	$3,040
7 Bedrooms	$3,283
8 Bedrooms	$3,447

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,760	$206,891	0.85%	C
3BR	$2,140	$240,691	0.89%	C
4BR	$2,340	$295,460	0.79%	D
5BR	$2,714	$325,271	0.83%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

39,243

Median Household Income

$64,127

Housing Units

17,695

Renter Percentage

34.0%

Occupancy Rate

95.3%

Renter Occupied

5,735

The ZIP code 46410, located in the Merrillville, IN, Gary, IN HUD Metro FMR Area, serves as a solid cash-flow anchor within a Section 8 portfolio strategy. The Fair Market Rent (FMR) for ZIP 46410 in fiscal year 2024 is set at $1520, closely aligning with the current market rent of $1,537. This minimal spread of just $17 indicates that properties in this area will maintain steady occupancy rates under the Section 8 program, ensuring reliable rental income.

The median home value in ZIP 46410 stands at $240,070. Given the relatively low spread between the FMR and market rent, this area offers landlords a predictable cash flow, which is crucial for maintaining financial stability and planning long-term investments. The slight premium in market rent over the FMR suggests a minor upside potential for landlords willing to manage Section 8 properties effectively.

Cash Flow Stability: With the FMR and market rent nearly identical, landlords can expect consistent cash flow from their Section 8 tenants without significant fluctuations due to market changes.
Occupancy Rates: The close alignment of FMR and market rent also supports high occupancy rates, reducing the risk of vacancies and associated losses.
Investor Confidence: For small-portfolio investors, the predictability offered by ZIP 46410 ensures that they can rely on stable returns, making it an attractive addition to their investment mix.

While there is a 0.3% price-cut share and a 42-day Days on Market (DOM), these factors do not significantly impact the cash flow anchor status of ZIP 46410. The 34.0% renter share and median income of $64,127 further support the area's role as a dependable part of a Section 8 portfolio, as these figures indicate a stable demand for rental properties and the ability of residents to afford housing costs.

In conclusion, ZIP 46410 is best suited as a cash-flow anchor within a Section 8 portfolio strategy, thanks to its tight alignment between FMR and market rents, along with its overall economic stability. Landlords and investors should focus on leveraging this stability to ensure consistent returns and financial security.

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.