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 | $1,720 |
| 1 Bedroom | $1,940 |
| 2 Bedrooms | $2,230 |
| 3 Bedrooms | $2,890 |
| 4 Bedrooms | $3,520 |
| 5 Bedrooms | $4,083 |
| 6 Bedrooms | $4,573 |
| 7 Bedrooms | $4,939 |
| 8 Bedrooms | $5,186 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,230 | $397,982 | 0.56% | F |
| 3BR | $2,890 | $495,346 | 0.58% | F |
| 4BR | $3,520 | $716,370 | 0.49% | F |
| 5BR | $4,083 | $997,776 | 0.41% | F |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP 46077, Zionsville, IN, suggests that landlords and small-portfolio investors can maintain strong pricing power over the next 12-24 months. The median home value stands at $673,364, indicating a robust market where property values are high and likely to remain so. With only 0.2% of listings having reduced their prices, it's evident that sellers are confident in their asking prices, which further supports the notion of stable or rising property values. The median days on market (DOM) is 24 days, showing that homes are selling quickly, a sign of active demand.
The combination of these factors—high median home value, minimal price reductions, and quick sales—implies that there is a healthy balance between supply and demand. This balance allows for landlords and investors to potentially increase rental rates without fear of significant vacancy increases, thus maintaining or even improving their cash flow positions.
On the rental side, the forward-looking market analysis is equally positive. The Fair Market Rent (FMR) for ZIP 46077 in fiscal year 2024 is projected to be $1,960, while the current market rent, as measured by ZORI, is $1,784. This gap suggests that rental rates have room to grow, aligning with the overall trend of increasing property values. Investors can leverage this potential growth to adjust their rental pricing strategies accordingly, ensuring they capture the full value of their properties.
For long-term investors, the data points to a realistic appreciation thesis. Given the high median home value and the minimal instances of price reduction, coupled with quick sales times, it's reasonable to expect continued appreciation in property values. This expectation is supported by the projected rise in rental rates, which often correlates with increases in property values. However, it's important to note that appreciation is not guaranteed and will depend on broader economic conditions and local market specifics.
In summary, the current metrics in ZIP 46077 provide a solid foundation for landlords and small-portfolio investors to maintain strong pricing power in both the sale and rental markets. The setup implied by the data suggests an environment conducive to steady property value appreciation and potential rental rate increases, enhancing investment returns over time.
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.