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

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

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

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

Housing Authorities Serving ZIP 46614

Housing Authority of South Bend (South Bend, IN) - 2,468 Section 8 vouchers
Housing Authority of the City of Mishawaka (Mishawaka, IN) - 350 Section 8 vouchers
St. Joseph County Housing Authority (North Liberty, IN) - 243 Section 8 vouchers

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.

Affordability Gap: The difference between the ZORI ($1,209) and the FMR ($990) highlights a notable affordability gap. This gap means that renters who do not qualify for vouchers or cannot secure them might struggle to find housing within their budget.
Rental Market Dynamics: With 20.3% of the population being renters, and a total population of 29,602, there are approximately 6,000 potential rental households. The disparity between market rents and voucher rates could lead to increased competition among landlords for tenants willing and able to pay the higher market rates.

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). 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.