Location: Marshall County, IN | Metro: South Bend-Mishawaka, 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 | $810 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,170 | $233,025 | 0.5% | F |
| 3BR | $1,420 | $271,986 | 0.52% | F |
| 4BR | $1,540 | $348,303 | 0.44% | F |
| 5BR | $1,786 | $491,859 | 0.36% | F |
U.S. Census Bureau data (2024)
The median income in Bremen, IN (ZIP 46506) stands at $79,386. Given the market rate for rent is $948 per month, this places significant strain on households, especially when considering other living expenses. To put it into perspective, a household earning the median income would spend approximately 14.7% of their gross monthly income on rent alone, which does not account for utilities, food, healthcare, and other necessities.
Comparatively, the Fair Market Rent (FMR) for ZIP 46506, as determined by HUD for fiscal year 2024, is set at $990. This figure represents the amount the Housing Choice Voucher program will pay towards rent. Therefore, landlords who accept vouchers should be aware that they might receive slightly less than the market rate but still a competitive amount.
Bremen has a population of 9,994, with 21.6% of residents being renters. The affordability gap, where market rates exceed what many can comfortably pay, means landlords face a challenging rental market. There is likely to be increased competition among landlords to attract tenants who can afford the higher market rates, while those who cannot may turn to subsidized housing options such as vouchers.
For landlords considering whether to accept vouchers or focus on cash-paying tenants, the decision hinges on understanding the local market dynamics. Accepting vouchers ensures a steady stream of rental income, albeit potentially lower than market rates. However, it also opens up the property to a wider pool of potential tenants, reducing vacancy risks. On the other hand, targeting cash-paying tenants might yield higher immediate returns but comes with greater risk due to the affordability constraints faced by many in the area.
The takeaway for landlords is to carefully consider the balance between voucher and cash-paying tenants. While the $948 market rate offers higher profitability, the $990 voucher payment provides stability and access to a larger tenant base. Landlords should assess their financial needs and the local demand for affordable housing before deciding on their strategy.
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.