Section 8 Fair Market Rent (FMR) for ZIP 46037 - 2027

Investment Score for ZIP 46037

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,560
1 Bedroom	$1,760
2 Bedrooms	$2,020
3 Bedrooms	$2,620
4 Bedrooms	$3,190
5 Bedrooms	$3,700
6 Bedrooms	$4,144
7 Bedrooms	$4,476
8 Bedrooms	$4,700

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,020	$339,332	0.6%	F
3BR	$2,620	$395,513	0.66%	D
4BR	$3,190	$498,298	0.64%	D
5BR	$3,700	$656,057	0.56%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 46037 (Fishers, IN) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 46037 is set by HUD for 2026, with the following rates: - 0BR: $1460 - 1BR: $1650 - 2BR: $1920 (which is 16.2% of the median household income) - 3BR: $2490 - 4BR: $3050 These figures represent the maximum rent that a Section 8 voucher holder can pay. However, it is important to note that these rates are significantly lower than the actual rental market prices. For instance, the Zillow median price for a 2BR property in Fishers is $338,438, which translates into a monthly mortgage payment far exceeding the FMR. The price-to-FMR ratio for a 2BR unit is 14.7x, indicating that the actual rental costs are much higher than what is covered by the vouchers. Given this disparity, voucher holders face significant constraints in finding suitable housing within their budget. They may be limited to older properties or units that do not meet the quality standards expected by most residents in this affluent area. Additionally, landlords might be hesitant to accept Section 8 vouchers due to the higher administrative burden and the perception that they receive less rent compared to market rates. #### Affordability & Renter Profile Fishers, IN, has a median household income of $141,810, which places it among the highest-income areas in Indiana. The population of 48,713 includes a relatively small percentage of renters at 20.3%, suggesting that homeownership is prevalent in the community. This high-income environment implies that most residents can afford market-rate housing without assistance. The occupancy rate of 95.7% indicates that the rental market is quite tight, with very few vacant units available. This tightness could make it challenging for voucher holders to find affordable housing, as landlords may prefer market-rate tenants who can pay higher rents. Furthermore, the high median income suggests that even those who rent are likely to be able to afford higher rents, making the competition for lower-cost units particularly fierce. #### Investor Angle From an investor’s perspective, the ZIP code 46037 presents both opportunities and challenges. The FMR rates are substantially lower than the actual rental market prices, which means that landlords accepting Section 8 vouchers will have to manage their expectations regarding cash flow. For example, a 2BR unit with an FMR of $1920 would be challenging to maintain profitability if the market rent is significantly higher. The price-to-FMR ratio of 14.7x suggests that the typical market rent for a 2BR unit could be around $28,200 annually ($1920 * 14.7), or approximately $2350 per month. This is nearly 25% higher than the FMR. In terms of investment grade, the ZIP code 46037 is considered high-grade due to its strong economic indicators and low vacancy rates. However, the high price-to-FMR ratio indicates that investments focused on Section 8 tenants may struggle to generate positive cash flow unless the investor can secure units at below-market rates or in areas where there is a surplus of lower-quality housing. #### Specific Actionable Insights 1. **Target Lower-Cost Units**: Investors should focus on acquiring units that are priced closer to the FMR levels. For a 2BR unit, targeting properties that rent for around $1920 or slightly above would be more feasible for maintaining positive cash flow when renting to Section 8 voucher holders. 2. **Consider Property Quality**: Given the high median income and tight rental market, voucher holders may be willing to accept lower-quality units. Investors should consider purchasing older or less desirable properties that are more likely to be rented at FMR rates. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can provide insights into the demand for Section 8 housing and potential strategies to attract voucher holders. This can include understanding the waiting list dynamics and any local initiatives aimed at increasing the availability of affordable housing. #### Bottom Line For Section 8-focused investors, the ZIP code 46037 presents a challenging environment due to the high price-to-FMR ratio and the tight rental market. The recommendation would be to **Skip** this ZIP code unless investors can identify specific opportunities to acquire units at or near FMR levels. The high median income and limited number of renters suggest that the majority of the market is not dependent on rental assistance programs, making it difficult to find a sustainable business model for Section 8 properties in this area.

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.