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 | $1,250 |
| 1 Bedroom | $1,410 |
| 2 Bedrooms | $1,620 |
| 3 Bedrooms | $2,110 |
| 4 Bedrooms | $2,550 |
| 5 Bedrooms | $2,958 |
| 6 Bedrooms | $3,313 |
| 7 Bedrooms | $3,578 |
| 8 Bedrooms | $3,757 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,620 | $220,323 | 0.74% | D |
| 3BR | $2,110 | $370,847 | 0.57% | F |
| 4BR | $2,550 | $556,365 | 0.46% | F |
| 5BR | $2,958 | $691,198 | 0.43% | F |
U.S. Census Bureau data (2024)
The Section 8 housing market in ZIP code 46040, located in Fishers, Indiana, within Hamilton County and the Indianapolis-Carmel, IN HUD Metro FMR Area, presents a nuanced opportunity for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for this area is set at $1390 per month for fiscal year 2024. In contrast, the Census American Community Survey (ACS) reports the average market rent at $1,528 per month. This discrepancy means that landlords accepting Section 8 vouchers will experience marginal cash flow at the HUD FMR rate, as it falls slightly below the market average.
To understand the potential for investment further, consider the median home value in ZIP 46040, which stands at $493,651. By dividing the HUD FMR of $1390 by the median home value, we derive a rent-to-price ratio of approximately 0.28%. This ratio indicates that rental income from Section 8 units is relatively low compared to the value of the property, suggesting that the primary financial benefit comes from stable, government-backed tenants rather than high rental yields.
The rental market dynamics also influence the decision-making process for investors. With a median days on market (DOM) of just 25 days and a price-cut share of only 0.3%, the rental market in ZIP 46040 is highly competitive and quick to fill vacancies. This suggests strong demand for rental properties, which can help maintain occupancy rates and reduce the risk of prolonged vacancy periods.
In summary, while landlords accepting Section 8 vouchers in ZIP 46040 will see marginal cash flow due to the slightly lower HUD FMR compared to the market rent, the strength of the rental market ensures steady demand. Given the low price-cut share and quick turnover, the strongest angle for investors in this area is stability, offering a reliable source of tenants and minimizing the risks associated with market fluctuations.
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.