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 | $1,300 |
| 1 Bedroom | $1,520 |
| 2 Bedrooms | $1,770 |
| 3 Bedrooms | $2,140 |
| 4 Bedrooms | $2,330 |
| 5 Bedrooms | $2,703 |
| 6 Bedrooms | $3,027 |
| 7 Bedrooms | $3,269 |
| 8 Bedrooms | $3,432 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,770 | $229,028 | 0.77% | D |
| 3BR | $2,140 | $324,484 | 0.66% | D |
| 4BR | $2,330 | $501,176 | 0.46% | F |
| 5BR | $2,703 | $733,886 | 0.37% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 46617, located in the South Bend-Mishawaka, IN HUD Metro FMR area, does not align favorably for landlords. The Fair Market Rent (FMR) set at $1350 for fiscal year 2024 is below the market's Zero Occupancy Rate Index (ZORI), which stands at $1,486. This indicates that landlords aiming to meet market rates will find themselves slightly above the federally recommended rent levels, potentially leading to reduced rental income when compared to government subsidies.
Regarding the affordability of acquisitions, the median home value of $314,097 presents a mixed picture. The lack of available data on days on market (DOM) and the low 0.2% price-cut share suggest that homes are generally selling quickly without significant discounts. However, the median home value is relatively high, which could pose challenges for investors looking to purchase properties with limited capital. Despite these costs, the quick sale times indicate a stable real estate market, though it may not be particularly advantageous for acquiring multiple units.
Tenant demand in ZIP 46617 is robust, with a total population of 10,032 and 37.4% of residents being renters. This implies a steady pool of potential tenants, which can help ensure consistent occupancy rates. The substantial renter share also suggests that many residents are likely seeking affordable housing options, making the area suitable for Section 8 properties.
In conclusion, while tenant demand in ZIP 46617 is strong, the rent math is less favorable due to the discrepancy between the FMR and ZORI. Acquisition costs are high, but the market stability and quick sale times offer some assurance. Landlords should carefully consider the financial implications of operating below market rents to qualify for Section 8 tenancies, balancing the need for federal subsidies against the potential loss of rental income. The presence of a large renter base supports the viability of such investments, provided the landlord can manage the financial constraints effectively.
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.