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 | $850 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,170 | $201,687 | 0.58% | F |
| 3BR | $1,420 | $256,237 | 0.55% | F |
| 4BR | $1,540 | $300,188 | 0.51% | F |
| 5BR | $1,786 | $360,025 | 0.5% | F |
U.S. Census Bureau data (2024)
The ZIP code 46635, located in South Bend, Indiana, presents a dynamic rental market with specific characteristics that can inform both landlords and small-portfolio investors. The Fair Market Rent (FMR) for the area stands at $990 for fiscal year 2024, slightly above the market rent of $955 reported by the Census American Community Survey (ACS).
This suggests that the rental market is relatively stable, with rents closely aligned to what is considered fair and reasonable by federal standards. However, the lack of data on price-cut share and days on market (DOM) makes it difficult to determine if there is an oversupply or undersupply of rental units. Typically, a higher price-cut share and longer DOM would indicate an excess of supply over demand, but without these metrics, we cannot definitively conclude.
The median home value in ZIP 46635 is $262,258, which provides context for the overall cost of living and property values in the area. With 23.0% of residents being renters, there is a significant portion of the population that relies on the rental market for housing. This percentage indicates a moderate level of long-term housing pressure, suggesting that a substantial number of residents are likely to continue seeking rental properties rather than purchasing homes.
The interplay between the FMR and market rent figures implies a balanced market where demand meets supply. Landlords should be aware of the fair rent levels set by the FMR to ensure their properties remain competitive and attractive to potential tenants. For small-portfolio investors, understanding the median home value can help in assessing the potential resale value of any properties they might acquire or manage.
The rental share also points to ongoing needs for affordable housing options, which could present opportunities for investors willing to cater to this segment of the market. While the exact trajectory of the market remains unclear due to missing time-series data, the current snapshot indicates a market where rental demand is steady, supported by a notable proportion of residents who choose or need to rent rather than own.
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.