Section 8 Fair Market Rent (FMR) for ZIP 46060 - 2027

Investment Score for ZIP 46060

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	$1,280
1 Bedroom	$1,440
2 Bedrooms	$1,660
3 Bedrooms	$2,150
4 Bedrooms	$2,620
5 Bedrooms	$3,039
6 Bedrooms	$3,404
7 Bedrooms	$3,676
8 Bedrooms	$3,860

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	$1,660	$267,363	0.62%	D
3BR	$2,150	$314,892	0.68%	D
4BR	$2,620	$425,085	0.62%	D
5BR	$3,039	$539,514	0.56%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 46060 (Noblesville, IN) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 46060 in Noblesville, Indiana, is set by HUD for 2026. For a two-bedroom unit, the FMR is $1590, which represents approximately 20.8% of the median household income of $91,918. This suggests that the rent for a two-bedroom unit is relatively affordable compared to the local income levels. However, the actual rental market dynamics must be considered to understand how these figures translate into real-world scenarios. In Noblesville, the FMR for a two-bedroom unit is significantly lower than the median home value on Zillow, which stands at $263,557. The price-to-FMR ratio for a two-bedroom unit is 13.8x, indicating that property values are much higher than the rent levels allowed under the Section 8 program. This can create constraints for voucher holders, who might find it challenging to secure housing within the FMR limits due to the high cost of living and limited availability of units that meet the criteria. #### Affordability & Renter Profile With a population of 47,610 and a renter percentage of 31.2%, the ZIP code has a substantial number of renters. Given the occupancy rate of 94.4%, the rental market appears to be quite tight, suggesting strong demand for rental properties. The median household income of $91,918 indicates a middle-class community, where many residents might be able to afford higher rents without assistance. However, the 31.2% of renters likely includes a mix of individuals and families who rely on the Section 8 program to manage their housing costs. The FMR for a three-bedroom unit is $2060, and for a four-bedroom unit, it is $2520. These figures represent a significant portion of the median income, especially for larger households. Therefore, the typical renter profile would include families who need larger units but struggle to pay market rates without government assistance. The high occupancy rate also implies that there is little room for new rental units to enter the market without increasing competition among existing properties. #### Investor Angle From an investor perspective, the ZIP code 46060 presents both opportunities and challenges. The FMRs are set well below the median home values, making it difficult to achieve cash flow positive investments solely based on FMRs. For instance, a two-bedroom unit with an FMR of $1590 would have to compete with market rents that are much higher, given the price-to-FMR ratio of 13.8x. To determine the investment grade, we need to consider the potential for long-term appreciation and the stability of the rental market. Noblesville’s strong occupancy rate and middle-class demographic suggest that the rental market will remain stable, even if it is not immediately cash flow positive. Investors should focus on properties that can be rented out at slightly above FMR levels to ensure profitability while still being accessible to Section 8 voucher holders. #### Specific Actionable Insights 1. **Focus on Larger Units**: Given the high FMR for three and four-bedroom units ($2060 and $2520 respectively), investors should prioritize purchasing or developing larger units. These units are more likely to attract families who benefit from the Section 8 program and can help mitigate some of the financial risks associated with lower rental income. 2. **Consider Location-Specific Strategies**: Since the rental market is tight, investors should look for areas within Noblesville that have slightly lower property values or less competition. This could involve targeting neighborhoods that are less desirable but still within the city limits, where the price-to-FMR ratio might be more favorable. 3. **Engage with Local Real Estate Agents**: To better understand the nuances of the rental market, investors should work closely with local real estate agents who can provide insights into the specific needs of Section 8 tenants and the availability of units that meet HUD standards. This can help in identifying properties that are more likely to be rented out quickly and at reasonable rates. #### Bottom Line Given the high price-to-FMR ratio and the tight rental market, the recommendation for Section 8-focused investors in ZIP code 46060 is to **Hold**. While the immediate cash flow might not be positive, the long-term stability and potential for appreciation make it a worthwhile investment. Focusing on larger units and engaging with local real estate professionals can help optimize returns and ensure that properties are occupied by eligible Section 8 tenants.

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.