Section 8 Fair Market Rent (FMR) for ZIP 46038 - 2027

Investment Score for ZIP 46038

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	$1,540
1 Bedroom	$1,730
2 Bedrooms	$1,990
3 Bedrooms	$2,580
4 Bedrooms	$3,140
5 Bedrooms	$3,642
6 Bedrooms	$4,079
7 Bedrooms	$4,405
8 Bedrooms	$4,625

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	$1,990	$267,424	0.74%	D
3BR	$2,580	$349,084	0.74%	D
4BR	$3,140	$419,972	0.75%	D
5BR	$3,642	$566,977	0.64%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 46038 (Fishers, IN) #### Section 8 Voucher Dynamics In ZIP code 46038, the Fair Market Rent (FMR) for a two-bedroom unit is set at $1,940 per month for 2026. However, the actual median rent for a two-bedroom unit on Zillow is significantly higher at $264,589, which translates to an average monthly rent of approximately $2,204 based on typical annual rent cycles. This means that the actual rent exceeds the FMR by about $264 per month, creating a gap between what voucher holders can afford and the actual market rates. The constraint for voucher holders is that landlords must accept the FMR rate, which is lower than the prevailing market rate. Therefore, landlords who wish to participate in the Section 8 program must be willing to accept a lower rental income compared to market rates. #### Affordability & Renter Profile The median household income in Fishers, IN (ZIP 46038) is $106,886, indicating a relatively affluent population. With 29.9% of the residents being renters, it suggests a diverse housing market where both homeowners and renters coexist. The occupancy rate of 95.7% indicates a tight market, meaning there is high demand for rental properties relative to supply. Given that the FMR for a two-bedroom unit represents only 21.8% of the median income, it is clear that most residents can afford market-rate rents without assistance. However, the 29.9% of renters might include a mix of young professionals, families, and individuals who rely on financial assistance such as Section 8 vouchers to find affordable housing. #### Investor Angle From an investor perspective, the ZIP code 46038 presents a challenging scenario for cash flow when relying solely on FMR rates. The price-to-FMR ratio of 11.4x suggests that the purchase price of a property is much higher than the expected rental income under the Section 8 program. For instance, a two-bedroom property priced at $264,589 would have a monthly mortgage payment of around $1,300 if financed at a 5% interest rate over 30 years. Adding property taxes, insurance, and maintenance costs, the total monthly expenses could easily exceed the FMR of $1,940. This implies that landlords participating in the Section 8 program would likely face negative cash flow unless they can offset these costs through other means. Given the high purchase prices and the tight market conditions, the investment grade for Section 8 properties in this ZIP code is relatively low. Investors looking to enter this market should carefully consider their financial models and ensure that they can manage the property effectively to maintain profitability. #### Specific Actionable Insights 1. **Target Property Type**: Focus on acquiring one-bedroom units, which have an FMR of $1,670. Although the price-to-FMR ratio remains high, the demand for smaller units is likely to be more stable due to the presence of young professionals and single individuals who may benefit from the Section 8 program. Additionally, the median household income supports the idea that many residents can afford market-rate rents, making smaller units more attractive to voucher holders. 2. **Consider Location-Specific Factors**: While the overall market is tight, certain neighborhoods within ZIP 46038 might offer better opportunities for positive cash flow. Areas with slightly lower property values or higher concentrations of renters could provide a more favorable environment for Section 8 investments. It’s crucial to conduct thorough neighborhood analysis to identify these pockets of opportunity. 3. **Explore Alternative Financing Options**: Given the high price-to-FMR ratio, traditional financing methods might not be sufficient. Investors should explore alternative financing options such as government grants, tax credits, or partnerships with local non-profits that support affordable housing initiatives. These options can help reduce the overall cost burden and improve the feasibility of Section 8 investments. #### Bottom Line Based on the provided data, the recommendation for Section 8-focused investors in ZIP code 46038 is to **skip** this market. The high purchase prices and the significant gap between FMR and actual market rents make it difficult to achieve positive cash flow. The tight market conditions also suggest that competition for rental properties is fierce, further complicating efforts to attract tenants using Section 8 vouchers. Investors seeking to enter the Section 8 market should look for areas with lower property values and a higher proportion of renters relative to homeowners. However, if investors are willing to take on the challenge and can secure alternative financing or identify niche opportunities, they might still find some value in this market. But overall, the high costs and low FMR rates indicate that this ZIP code is not ideal for Section 8-focused investments.

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.