Section 8 Fair Market Rent (FMR) for ZIP 46614 - 2027

Location: South Bend-Mishawaka, IN | Metro: South Bend-Mishawaka, IN HUD Metro FMR Area

Investment Score for ZIP 46614

D
Monthly Rent (2BR)
$1,170
Median Price (2BR)
$170,322
1% Rule
0.69%
Annual Yield
8.24%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

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

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
1BR $1,000 $99,436 1.01% B
2BR $1,170 $170,322 0.69% D
3BR $1,420 $238,430 0.6% F
4BR $1,540 $333,347 0.46% F
5BR $1,786 $450,709 0.4% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
29,602
Median Household Income
$74,153
Housing Units
12,876
Renter Percentage
20.3%
Occupancy Rate
94.8%
Renter Occupied
2,482

The median income in ZIP code 46614, located in South Bend, IN, stands at $74,153. The market rate for rent, known as the Zillow Observed Rent Index (ZORI), is $1,209 per month. This places a significant burden on households, particularly when compared to the Fair Market Rent (FMR) payment standard for housing vouchers, which is set at $990 for the fiscal year 2024.

To put these numbers into perspective, consider that the median household would need to allocate approximately 16.3% of their annual income towards rent at the market rate. However, the government’s voucher system aims to ensure that no household pays more than 30% of their income toward rent, making the $990 FMR a more affordable option for eligible tenants.

The takeaway for landlords considering whether to accept vouchers versus relying solely on cash-paying tenants is clear. While accepting a voucher at $990 may seem less lucrative compared to the market rate of $1,209, it can provide a steady stream of income and reduce vacancy rates. In a market where affordability is a concern, vouchers represent a reliable source of tenants who can meet the required rent payments without financial strain.

Landlords should also consider the broader implications of the affordability gap. It may necessitate a diversified strategy, including both voucher and cash-paying tenants, to balance risk and reward in the rental market. By embracing vouchers, landlords can tap into a segment of the market that might otherwise be overlooked, ensuring a more stable and diverse tenant base.

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.