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 | $1,090 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,410 |
| 3 Bedrooms | $1,830 |
| 4 Bedrooms | $2,230 |
| 5 Bedrooms | $2,587 |
| 6 Bedrooms | $2,897 |
| 7 Bedrooms | $3,129 |
| 8 Bedrooms | $3,285 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,410 | $313,711 | 0.45% | F |
| 3BR | $1,830 | $369,166 | 0.5% | F |
| 4BR | $2,230 | $529,668 | 0.42% | F |
| 5BR | $2,587 | $677,084 | 0.38% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 46034 in Cicero, Indiana, reveals that HUD Fair Market Rent (FMR) stands at $1370 for fiscal year 2024. This figure is notably lower than the market rent, which is currently priced at $1965 according to Zillow's Observed Rent Index (ZORI). Given these numbers, voucher tenants will only cashflow at the HUD FMR rate if the landlord offers premium units with enhanced amenities that justify a higher rental subsidy.
To further analyze the investment potential, consider the median home value in the area, which is $402,358. The rent-to-price ratio can be calculated by dividing the average monthly rent ($1965) by the median home value ($402,358), multiplied by 12 months to annualize the rent. This yields a ratio of approximately 5.8%, indicating that the rental income is relatively low compared to the property values in the area.
In terms of days on the market (DOM) and price cut shares, the data shows an N/A for DOM and a 0.2% share of properties experiencing price cuts. These figures suggest that the real estate market is stable, with few homes needing significant price adjustments to sell. However, since DOM data is unavailable, it's challenging to fully assess how quickly properties move from the market to new ownership.
The strongest investor angle in this market is likely stability. While cashflow might be limited due to the disparity between HUD FMR and market rent, the low percentage of price cuts and stable market conditions indicate that investments in this area are less risky and more predictable, making it a reliable choice for landlords and small-portfolio investors looking for consistent returns over time.
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.