Location: South Bend-Mishawaka, IN | Metro: Elkhart-Goshen, IN MSA
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 | $890 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,170 | $176,670 | 0.66% | D |
| 3BR | $1,460 | $247,644 | 0.59% | F |
| 4BR | $1,550 | $321,120 | 0.48% | F |
| 5BR | $1,798 | $418,370 | 0.43% | F |
U.S. Census Bureau data (2024)
ZIP code 46517, located in Elkhart, IN, falls within the broader South Bend-Mishawaka, IN HUD Metro FMR Area. The Fair Market Rent (FMR) for ZIP 46517 in fiscal year 2024 is set at $990, slightly above the area's median market rent of $938. This indicates that while rents are higher in 46517 compared to the average, they are still within the range of what is considered fair market.
The median home value in 46517 stands at $236,608, which is lower than the typical home value found in other ZIP codes within the South Bend-Mishawaka metro area. This suggests that 46517 could be seen as a more affordable sub-market within the larger region, potentially attracting buyers looking for properties at a lower price point.
A key metric for landlords and small-portfolio investors is the percentage of renters, which is 36.7% in 46517. This figure is notably higher than the national average, indicating a strong demand for rental properties. High renter share combined with below-average home values often points to an area where Section 8 housing vouchers are prevalent, making it a sweet spot for landlords who can benefit from the stability of government-backed rental assistance programs.
To summarize, ZIP 46517 appears to be a value pocket within the South Bend-Mishawaka, IN HUD Metro FMR Area. It offers slightly higher rents than the metro average but significantly lower home values, along with a substantial renter population. These characteristics make it an attractive location for landlords and investors interested in the Section 8 market, providing both a manageable cost of entry and a robust tenant base.
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.