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 | $1,410 |
| 1 Bedroom | $1,630 |
| 2 Bedrooms | $1,910 |
| 3 Bedrooms | $2,320 |
| 4 Bedrooms | $2,520 |
| 5 Bedrooms | $2,923 |
| 6 Bedrooms | $3,274 |
| 7 Bedrooms | $3,536 |
| 8 Bedrooms | $3,713 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,910 | $305,095 | 0.63% | D |
| 3BR | $2,320 | $342,864 | 0.68% | D |
| 4BR | $2,520 | $462,441 | 0.54% | F |
| 5BR | $2,923 | $627,278 | 0.47% | F |
U.S. Census Bureau data (2024)
The potential risks for a first-time Section 8 landlord investing in ZIP code 46530 in Granger, IN, include significant tenant turnover. The market rent stands at $1,779, while the Fair Market Rent (FMR) for FY 2024 is set at $1,440, indicating that tenants might struggle to cover the difference, leading to higher turnover rates. This discrepancy can result in increased administrative burdens and costs associated with finding new tenants.
Vacancy exposure is another concern, with an average of 17 days on the market (DOM). This short period suggests a competitive rental market, but it also implies that landlords might face challenges in quickly filling vacancies, especially when dealing with the bureaucratic processes involved in Section 8 tenancy. A prolonged vacancy can lead to financial strain due to lost rental income.
Deferred maintenance is a critical issue given the typical home value of $409,649 and the median income of $122,129. Landlords may need to invest significantly in property upkeep to maintain the standards required for Section 8 eligibility, which can be costly relative to the income generated by the program. The gap between home values and median incomes indicates that residents might have limited funds available for maintenance contributions, increasing the burden on the landlord.
However, these risks are mitigated by the high renter share of 15.6%. High renter density typically correlates with a greater demand for housing vouchers, ensuring a steady pool of qualified Section 8 tenants. This robust demand reduces the likelihood of long-term vacancies and provides a reliable stream of rental income once the property is occupied.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.