Location: South Bend-Mishawaka, 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,420 | $158,817 | 0.89% | C |
| 4BR | $1,540 | $175,025 | 0.88% | C |
| 5BR | $1,786 | $185,462 | 0.96% | C |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 46601 in fiscal year 2024 is set at $990. This figure represents the maximum amount that a landlord can charge for rent under the Section 8 program, which is a federal assistance program that helps low-income families pay for housing. The FMR is not the actual rent that will be paid by the tenant; it's a benchmark used to determine the rent subsidy. For instance, if you list your property at $990 per month, the tenant would pay a portion of that based on their income, and the rest would come from the government.
In comparison, the average rent for ZIP 46601 according to the Census American Community Survey is $866. This indicates that the FMR for Section 8 is slightly above the market average, making it a reasonable rate for landlords who want to participate in the program without taking a significant financial hit.
The Census also reports that 75.7% of households in ZIP 46601 are renters, suggesting a strong demand for rental properties. This high percentage of renters makes it likely that there will be a steady stream of potential tenants interested in your property, especially those eligible for Section 8 assistance.
When acquiring a new property for a Section 8 rental, you should consider the median home value in the area, which is $147,187. This gives you an idea of the typical price range for homes in ZIP 46601, helping you make informed decisions about the purchase price of a property you plan to rent through the Section 8 program.
Before you decide to enroll your property in the Section 8 program, it is crucial to verify that your property meets the Housing Quality Standards (HQS). These standards ensure that the property is safe, decent, and sanitary for tenants. You must pass an inspection to confirm compliance with these standards, which is a requirement for participation in the program.
To summarize, the FMR of $990 sets a clear limit on what you can charge for rent, while the local average of $866 provides context on whether this rate is competitive. With 75.7% of households being renters, there is a robust demand for rental properties. The median home value of $147,187 offers insight into the typical costs associated with purchasing a property in the area. Lastly, ensuring your property meets HQS is a critical step to take before proceeding with the Section 8 program.
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.