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 | $1,190 |
| 1 Bedroom | $1,200 |
| 2 Bedrooms | $1,570 |
| 3 Bedrooms | $2,050 |
| 4 Bedrooms | $2,070 |
| 5 Bedrooms | $2,401 |
| 6 Bedrooms | $2,689 |
| 7 Bedrooms | $2,904 |
| 8 Bedrooms | $3,049 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,570 | $226,862 | 0.69% | D |
| 3BR | $2,050 | $313,692 | 0.65% | D |
| 4BR | $2,070 | $375,962 | 0.55% | F |
| 5BR | $2,401 | $414,422 | 0.58% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 46064 (Pendleton, IN) on the axes of yield and stability reveals it to be a moderate cash flow opportunity with relatively low stability. The Federal Market Rent (FMR) for FY 2024 is set at $1,320, which is higher than the local market rent of $1,141, indicating a positive yield potential. However, the median home value of $335,705 suggests that the area is not particularly focused on high-turnover rental properties typical of a flip-style market.
The stability metrics paint a picture of an unstable rental market. With only 14.8% of the population being renters, there is a limited pool of tenants, which can lead to higher vacancy rates and greater competition among landlords. Additionally, the average days on market (DOM) for rentals stands at 25 days, suggesting that finding new tenants is a relatively quick process but also indicating a less stable tenant base. A shorter DOM often correlates with a transient population or lower demand, both of which can impact long-term occupancy rates.
The median household income of $94,609 provides some insight into the financial health of the residents, though it does not directly correlate with rental stability. Higher incomes might support higher rents, but they do not necessarily guarantee stable tenancy if the rental market is not robust or if there are other factors influencing housing preferences.
In summary, ZIP 46064 offers a moderate yield due to the FMR exceeding the market rent, but the low percentage of renters and relatively short DOM indicate instability. This makes it neither a prime candidate for high-yield, low-stability flip-style investments nor a reliable steady-cashflow zone. Landlords and small-portfolio investors should approach this market with caution, focusing on property management strategies that can mitigate the risks associated with tenant turnover.
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.