Location: Indianapolis-Carmel, IN | Metro: Anderson, 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 | $1,150 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,520 |
| 3 Bedrooms | $1,990 |
| 4 Bedrooms | $2,000 |
| 5 Bedrooms | $2,320 |
| 6 Bedrooms | $2,598 |
| 7 Bedrooms | $2,806 |
| 8 Bedrooms | $2,946 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,520 | $166,019 | 0.92% | C |
| 3BR | $1,990 | $211,362 | 0.94% | C |
| 4BR | $2,000 | $283,945 | 0.7% | D |
| 5BR | $2,320 | $375,700 | 0.62% | D |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP 46011 (Anderson, IN) presents a nuanced scenario for both landlords and small-portfolio investors. With a median home value set at $209,942, the area remains relatively affordable compared to national averages, which is advantageous for those looking to enter the market or expand their portfolio.
A key indicator of market stability is seen in the fact that only 0.2% of listings have been reduced, suggesting a robust demand for homes in the region. This low percentage of price reductions points towards a sellers' market where pricing power leans towards maintaining or slightly increasing asking prices, rather than engaging in significant discounts.
The median days on market (DOM) being listed as N/A can be interpreted as either a very active market with quick sales or a less liquid market with sporadic transactions. Given the context of low price reductions, it's more likely the former, indicating swift turnover of properties and a competitive bidding environment. This setup supports the idea of steady home values without drastic fluctuations, providing a stable foundation for long-term investment strategies.
Moving to the rental side, the Fair Market Rent (FMR) for ZIP 46011 in fiscal year 2024 is projected at $1,290, while current market rents hover around $1,040 according to Census ACS data. This discrepancy suggests an upward trend in rental rates, aligning with potential increases in property values. Landlords and investors can expect to see a gradual rise in rental income, enhancing cash flow and overall investment returns.
For long-hold investors, the realistic appreciation thesis revolves around the consistent demand for housing and the potential for rental rate increases to drive up property values. The combination of a stable home value, low price reductions, and rising rental rates indicates a favorable environment for capital appreciation over the next 12-24 months. However, the lack of significant DOM data suggests caution against expecting rapid price escalations; instead, a moderate and steady growth trajectory is anticipated.
In summary, the current market conditions in ZIP 46011 support a strategy focused on maintaining property values and gradually increasing rental incomes. This approach offers a balanced risk-reward profile for those committed to a long-term investment horizon in Anderson, IN.
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.