Location: Indianapolis-Carmel, IN | Metro: Indianapolis-Carmel, 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 | $980 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,650 |
| 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,270 | $218,025 | 0.58% | F |
| 3BR | $1,650 | $304,575 | 0.54% | F |
| 4BR | $2,000 | $411,072 | 0.49% | F |
U.S. Census Bureau data (2024)
Arcadia, IN, located in ZIP code 46030, is a modest-sized neighborhood with a total population of 3,035 residents. The area is characterized by a relatively low percentage of renters at 22.3%, suggesting a predominantly owner-occupied community. The median household income in this ZIP code is a healthy $90,536, which places it above the national average and indicates a prosperous local economy. Median home values in the area stand at $305,155, reflecting a stable housing market with homes that are well-valued.
The economic landscape for rental properties in Arcadia, IN, is particularly interesting when compared to the Federal Market Rent (FMR) and the actual market rent. The FMR for ZIP code 46030 for fiscal year 2024 is set at $1,160, which is notably higher than the Census-reported average market rent of $959. This discrepancy suggests an opportunity for landlords who can manage properties to meet the higher FMR standards set by the government. It also implies that there could be a competitive edge for those who can offer quality rentals at or near the FMR rate, given the potential for tenants seeking Section 8 vouchers.
Considering these factors, ZIP code 46030 is likely to appeal more to hands-on value-add buyers rather than hands-off operators. The difference between the FMR and the current market rent presents a chance for active management to improve property conditions and potentially command higher rents that align with the FMR. For those willing to invest in property upgrades and tenant services, the financial returns could be significant. On the other hand, hands-off operators might find the gap between the FMR and market rents challenging, as it requires a level of engagement to ensure compliance with Section 8 requirements and to attract tenants willing to pay closer to the FMR rates.
In summary, Arcadia, IN, in ZIP code 46030, offers a balanced environment with a solid economic foundation and a niche opportunity for rental investments, especially for those who are prepared to actively manage their properties to meet the higher FMR standards.
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.