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 | $1,020 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,680 |
| 4 Bedrooms | $1,780 |
| 5 Bedrooms | $2,065 |
| 6 Bedrooms | $2,313 |
| 7 Bedrooms | $2,498 |
| 8 Bedrooms | $2,623 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,290 | $252,816 | 0.51% | F |
| 3BR | $1,680 | $307,704 | 0.55% | F |
| 4BR | $1,780 | $365,463 | 0.49% | F |
| 5BR | $2,065 | $521,096 | 0.4% | F |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP 46573 (Wakarusa, IN) is poised for stability and cautious optimism over the next 12-24 months. The median home value currently stands at $311,364, which reflects a balanced market where neither buyers nor sellers hold overwhelming advantage. The fact that the percentage of listings being reduced is not available suggests that there is neither significant pressure to lower prices nor a strong upward push on them, indicating a market that is neither overheated nor in a state of decline.
Similarly, the median days on market (DOM) being unavailable points to a scenario where homes are selling relatively quickly, but not so fast as to suggest a seller's market. This combination signals that pricing power will remain steady, with neither drastic increases nor decreases expected. Landlords and small-portfolio investors should maintain their current pricing strategies without making substantial adjustments.
On the rental side, the Fair Market Rent (FMR) for ZIP 46573 in fiscal year 2024 is set at $990. This is a notable increase from the current market rent of $955, as reported by the Census ACS. This upward trend in rental rates indicates a growing demand for housing in the area, potentially driven by factors such as job growth or an influx of new residents. Investors can expect to see modest rent increases, aligning with the FMR projections, which can help offset costs associated with property ownership and management.
For long-term investors, the setup in ZIP 46573 implies a realistic appreciation thesis based on the projected rental rate increases and stable home values. While the market is not signaling explosive growth, it does suggest a gradual and sustainable rise in both property values and rental income. This makes Wakarusa a viable location for those looking to build a consistent investment portfolio, rather than seeking rapid capital gains.
To summarize, the current data points to a market where landlords and small-portfolio investors can maintain their positions with confidence. Pricing power is likely to remain stable, with opportunities for modest appreciation in line with rental rate trends. The combination of median home value, listing reductions, and DOM all point towards a balanced market that favors steady, long-term investment strategies.
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.