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 | $990 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,660 |
| 4 Bedrooms | $2,020 |
| 5 Bedrooms | $2,343 |
| 6 Bedrooms | $2,624 |
| 7 Bedrooms | $2,834 |
| 8 Bedrooms | $2,976 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,110 | $171,280 | 0.65% | D |
| 2BR | $1,280 | $207,068 | 0.62% | D |
| 3BR | $1,660 | $294,409 | 0.56% | F |
| 4BR | $2,020 | $366,037 | 0.55% | F |
| 5BR | $2,343 | $456,946 | 0.51% | F |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 landlord investing in ZIP code 46052 in Lebanon, IN, are significant. Tenant turnover is a critical issue, as the market rent stands at $1,752 compared to the Federal Market Rent (FMR) of $1,150 for FY 2024. This disparity indicates that tenants might struggle to afford market rates, leading to frequent turnover and associated costs such as legal fees, cleaning, and repairs.
Vacancy exposure is another concern. With an average Days on Market (DOM) of 43 days, landlords can expect periods where their units remain unoccupied. During these times, they will not receive rental income but will still incur property taxes and maintenance expenses.
Deferred maintenance is also a risk factor. The typical home value in the area is $295,126, while the median household income is $68,930. This income level suggests that many residents might have difficulty affording substantial home improvements or repairs, potentially leading to higher maintenance costs for landlords over time.
However, these risks must be weighed against the high renter share in the area, which is 25.2%. A large number of renters often correlates with higher demand for housing vouchers, providing a steady stream of qualified tenants who can afford rent through government assistance. This demand can mitigate some of the financial risks associated with vacancy and turnover.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP code 46052 is moderate.
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.