Location: Starke County, IN | Metro: Michigan City-La Porte, 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 | $900 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,190 | $174,381 | 0.68% | D |
| 3BR | $1,460 | $214,811 | 0.68% | D |
U.S. Census Bureau data (2024)
The classification of ZIP 46532 (Hamlet, IN) on the axes of yield and stability reveals it to be a market that offers moderate potential for both cash flow and stability. The Federal Market Rent (FMR) for the area in fiscal year 2024 is set at $1010, while the market rent stands at $895. This suggests that properties in this ZIP code could potentially attract tenants willing to pay above-market rates, indicating a decent yield opportunity.
However, the median home value of $202,129 places significant constraints on the potential rental income, especially when considering the cost of acquisition and maintenance. For instance, if an investor were to purchase a property at the median value, they would need to ensure that the rental income, which is likely to be around $895, can cover mortgage payments, property taxes, insurance, and other expenses, leaving a profit margin.
On the stability axis, the data points to a less favorable picture. With only 12.1% of residents being renters, the demand for rental properties is relatively low. This low percentage of renters might lead to longer vacancy periods, thus affecting the stability of cash flow. Additionally, the lack of data on days on market (DOM) suggests there might be challenges in accurately predicting how quickly a property can be rented out once it becomes vacant. The average household income of $84,866 provides some assurance that tenants can afford rent, but it does not fully compensate for the low rental rate penetration.
In conclusion, ZIP 46532 is best classified as a steady-cashflow zone with moderate yield potential, but with notable risks to stability due to the low percentage of renters. Investors should carefully consider these factors before entering this market.
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.