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 | $900 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,220 | $102,619 | 1.19% | B |
| 3BR | $1,480 | $123,275 | 1.2% | A |
| 4BR | $1,600 | $123,385 | 1.3% | A |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 46613, located in South Bend, Indiana, within Saint Joseph County, operate under specific financial guidelines that directly impact landlords and small-portfolio investors. For fiscal year 2024, the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code is set at $1030. This figure is crucial because it represents the maximum amount that the Housing Choice Voucher program will reimburse landlords for rent.
In contrast, the local market rent for a two-bedroom unit, as measured by ZORI (Zillow Observed Rent Index), stands at $1,282. This difference between the SAFMR and the actual market rent is a key consideration for landlords who participate in the Section 8 program.
A voucher payment consists of two parts: the tenant's portion and the utility allowance. The tenant's portion is typically around 30% to 40% of their income, which they pay directly to the landlord. The remainder, up to the SAFMR limit, is paid by the housing authority. For instance, if a tenant's share is $300, then the housing authority would cover the rest, up to $1030. However, if the tenant's share plus the utility allowance exceeds $1030, the landlord will not receive additional funds beyond that limit.
The utility allowance varies but is generally designed to help cover the costs of electricity, water, and other utilities. Landlords should be aware that these allowances do not increase the total reimbursement above the SAFMR cap. In ZIP 46613, the utility allowance is not explicitly defined but typically ranges from $150 to $250 per month, depending on the household size and local utility costs.
Given the SAFMR of $1030 and the local market rent of $1,282, there is a reimbursement gap for landlords participating in Section 8. This gap amounts to approximately $252 per month for a two-bedroom unit. Landlords must weigh this gap against the benefits of stable tenancy and reduced vacancy rates when deciding whether to accept Section 8 vouchers.
To summarize, landlords in ZIP 46613 can expect a reimbursement of up to $1030 for a two-bedroom apartment, which falls short of the local market rent by $252. This economic reality shapes the decision-making process for landlords considering participation in the Section 8 program.
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.