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 | $940 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,280 | $132,761 | 0.96% | C |
| 3BR | $1,550 | $160,941 | 0.96% | C |
| 4BR | $1,680 | $184,235 | 0.91% | C |
U.S. Census Bureau data (2024)
The real estate market in ZIP 46616 (South Bend, IN) presents a unique setup for both landlords and small-portfolio investors. With a median home value of $144,096, the area remains affordable compared to many other markets across the country. The absence of any percentage of listings being reduced signals that sellers are holding firm on their asking prices, indicating a certain level of confidence in the market. This stability, combined with the low median days on market (DOM), suggests that homes are selling relatively quickly without significant price concessions.
On the rental side, the Forward Monthly Rent (FMR) for ZIP 46616 is set at $1,060 for fiscal year 2024, while the actual market rent, measured by Zillow's Observed Rent Index (ZORI), stands at $1,128. This indicates that the rental market is slightly above the government's projected fair market rate, which could mean that there is demand for rental properties in the area. Landlords should be aware of this trend as it suggests potential for maintaining or slightly increasing rents, provided they keep their properties competitive in terms of quality and location.
For long-term hold investors, the setup in ZIP 46616 implies a cautious approach regarding appreciation expectations. Given the stable home values and the slight premium in market rents over FMHs, there isn't a strong indication of rapid price increases in the immediate future. However, the affordability of the market and the steady rental income suggest that South Bend could be a reliable investment for those seeking consistent returns rather than speculative gains. Investors should focus on the long-term benefits of owning property in an area where housing remains accessible and where there is a demonstrated willingness to pay market rates for rentals.
In summary, the combination of stable home values and a rental market that exceeds government projections suggests a balanced environment for real estate investments in South Bend. While appreciation may not be explosive, the fundamentals support a solid investment thesis for those looking for dependable returns.
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.