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 | $870 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,180 | $146,829 | 0.8% | C |
| 3BR | $1,430 | $200,444 | 0.71% | D |
| 4BR | $1,550 | $222,599 | 0.7% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 46615, located in South Bend, Indiana, within St. Joseph County, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code is set at $990 for fiscal year 2024. This SAFMR is specifically tailored for this ZIP code, reflecting the local rental market conditions.
In contrast, the local market rent for a two-bedroom unit, as indicated by ZORI (Zillow Observed Rent Index), stands at $1,425. This figure represents the average rent price that tenants might pay on the open market without a voucher. For landlords, understanding the actual payment structure of a Section 8 voucher is crucial. Here’s a breakdown:
A Section 8 voucher holder is required to contribute 30% of their income toward rent. If we assume an average income for a voucher recipient in this area, they would pay approximately $297 based on the SAFMR of $990. However, the total amount paid by the voucher program includes both the tenant's contribution and a utility allowance.
The utility allowance varies but can be estimated around $150 for a two-bedroom apartment. Therefore, the total reimbursement to the landlord from the voucher program would be the sum of the tenant's contribution ($297) and the utility allowance ($150), making it $447. Adding this to the SAFMR gives a total reimbursement of $1,437.
This total reimbursement of $1,437 covers the rent and utilities for a two-bedroom apartment. It closely aligns with the local market rent of $1,425, indicating that landlords participating in the Section 8 program for this ZIP code can expect a reimbursement that nearly matches the open-market rent.
In ZIP 46615, landlords who accept Section 8 vouchers for a two-bedroom apartment will see a minimal surplus of $12, which is the difference between the total reimbursement ($1,437) and the local market rent ($1,425). This surplus ensures that landlords are compensated at rates comparable to the local market, reducing financial risk and maintaining property value.
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.