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 | $960 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,590 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,120 | $102,784 | 1.09% | B |
| 2BR | $1,310 | $105,314 | 1.24% | A |
| 3BR | $1,590 | $204,223 | 0.78% | D |
| 4BR | $1,720 | $298,892 | 0.58% | F |
| 5BR | $1,995 | $369,251 | 0.54% | F |
U.S. Census Bureau data (2024)
The ZIP code 46628, located in South Bend, IN, presents a dynamic rental market with specific characteristics that suggest a balance between supply and demand, but leaning towards slight demand pressure. The Fair Market Rent (FMR) for the area, set at $1020 for fiscal year 2024, is a benchmark established by HUD to ensure affordable housing options are available. This figure is notably lower than the actual market rent, as indicated by the Zillow Observed Rental Index (ZORI) at $1,240. This discrepancy suggests that the rental market in South Bend is experiencing upward pressure, as market rents exceed the fair market rent.
A further indication of this market pressure can be seen in the low price-cut share, which stands at just 0.2%. This means that very few properties are being discounted, a sign that landlords and property owners are able to maintain their asking rents without significant concessions. Additionally, the days on market (DOM) for rental listings is relatively short at 35 days, indicating that units are filling quickly once they become available. This quick turnover rate supports the notion that demand is robust relative to supply, though it does not necessarily imply a shortage.
The median home value in ZIP 46628 is $172,338, which is quite low compared to many other regions across the United States. This affordability could attract a diverse range of buyers, potentially increasing the competition for homeownership and putting additional pressure on the rental market. However, with a renter share of 31.6%, we see that a considerable portion of the population prefers renting over owning. This high percentage of renters can contribute to sustained demand for rental properties, as fewer residents opt to purchase homes.
In summary, the market in ZIP 46628 exhibits signs of demand slightly outpacing supply, evidenced by higher market rents compared to FMR, minimal price cuts, and quick rental turnovers. The significant renter share points to ongoing pressure on the rental market, making it an attractive investment opportunity for landlords and small-portfolio investors who are looking for steady occupancy rates and potential for rental income growth.
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.