Section 8 Fair Market Rent (FMR) for ZIP 46062 - 2027

Investment Score for ZIP 46062

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	$1,450
1 Bedroom	$1,630
2 Bedrooms	$1,870
3 Bedrooms	$2,420
4 Bedrooms	$2,950
5 Bedrooms	$3,422
6 Bedrooms	$3,833
7 Bedrooms	$4,140
8 Bedrooms	$4,347

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	$1,870	$310,140	0.6%	D
3BR	$2,420	$364,238	0.66%	D
4BR	$2,950	$489,991	0.6%	D
5BR	$3,422	$649,958	0.53%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 46062 (Noblesville, IN) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 46062 is set by HUD and varies based on the number of bedrooms. For a two-bedroom unit, the FMR is $1730 per month. However, the Zillow median price for a two-bedroom home in Noblesville is $310,808, which translates to a monthly mortgage payment of approximately $1500 assuming a 30-year fixed-rate mortgage at 4%. This suggests that landlords can charge rents well above the FMR without significantly impacting their ability to cover mortgage payments. The price-to-FMR ratio for a two-bedroom unit is 15.0x, indicating that the median home value is 15 times the monthly rent. This high ratio suggests that the rental market is relatively expensive compared to the purchase market, potentially limiting the utility of Section 8 vouchers for tenants seeking to rent properties. The voucher amount of $1730 would likely only cover a small portion of the total rent for a typical two-bedroom property, creating a significant gap that must be filled by the tenant's own resources. Given that 21.4% of the population are renters, this could mean that many voucher holders face challenges in finding affordable housing. #### Affordability & Renter Profile With a median household income of $120,100, the residents of Noblesville are generally well-off. The FMR for a two-bedroom unit represents 17.3% of the median income, which is relatively low, suggesting that most residents can afford to pay higher rents. However, this also means that the 21.4% of the population who are renters may struggle to find affordable housing, especially those relying solely on Section 8 vouchers. The occupancy rate of 94.5% indicates a tight rental market, where demand is high relative to supply. This tightness could further exacerbate the affordability issues faced by lower-income renters. Additionally, the high median home value and the limited percentage of renters suggest that the majority of the population owns their homes, which could indicate a preference for homeownership over renting. #### Investor Angle From an investor perspective, the ZIP code 46062 presents a mixed picture. While the rental market is tight and demand is strong, the high price-to-FMR ratio suggests that landlords may not be able to rely solely on FMR to generate positive cash flow. Assuming a conservative estimate of expenses, including maintenance, insurance, and property taxes, landlords would need to charge rents significantly above the FMR to achieve profitability. To illustrate, if we assume a total monthly expense of $800 for a two-bedroom unit, the landlord would need to charge at least $2530 ($800 + $1730) to break even. Given the median rent is much higher, this would likely result in positive cash flow, but it also means that the investor cannot rely solely on Section 8 vouchers to fill units. The investment grade for this ZIP code would be considered moderate due to the high cost of entry and the need for additional income sources beyond just the voucher amount. #### Specific Actionable Insights 1. **Target Properties Below Median Value**: Investors should focus on acquiring properties below the median value of $310,808. This will help ensure that the rental income, even when supplemented by Section 8 vouchers, can cover the mortgage and other expenses. For example, a property valued at $250,000 would have a monthly mortgage payment of around $1200, leaving room for a higher rent that still remains affordable for voucher holders. 2. **Consider Multi-Family Units**: Given the high FMR for larger units, multi-family properties may offer better opportunities for cash flow. A three-bedroom unit has an FMR of $2240, which is closer to the median income percentage. Investing in multi-family units could provide a more balanced approach to leveraging both Section 8 vouchers and market rents. 3. **Engage with Local Housing Authorities**: To maximize the utility of Section 8 vouchers, investors should engage closely with local housing authorities to understand the specific needs and preferences of voucher holders. This could include offering amenities or services that make the properties more attractive to these tenants, such as utilities included in the rent or proximity to public transportation. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 46062 is to **Hold**. While there are opportunities for positive cash flow, the high price-to-FMR ratio and the tight rental market suggest that investors should be cautious about relying solely on Section 8 vouchers. Instead, they should consider a diversified strategy that includes targeting properties below the median value and engaging with local housing authorities to optimize the use of vouchers. This approach will help mitigate risks and ensure a more stable investment outcome.

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.