Location: Indianapolis-Carmel, IN | Metro: Indianapolis-Carmel, IN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,040 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,740 |
| 4 Bedrooms | $2,120 |
| 5 Bedrooms | $2,459 |
| 6 Bedrooms | $2,754 |
| 7 Bedrooms | $2,974 |
| 8 Bedrooms | $3,123 |
U.S. Census Bureau data (2024)
In ZIP 46103, which falls under the Indianapolis-Carmel, IN HUD Metro FMR Area, the HUD Fair Market Rent (FMR) for FY 2024 is set at $1580. This figure represents the maximum rent that voucher holders can pay for a unit. In contrast, the Census ACS reports the market rent at $950, indicating a significant gap between the two values.
The HUD FMR is considerably higher than the actual market rent, suggesting that voucher tenants can cashflow in this area even with average units. The difference of $630 per month means that landlords and small-portfolio investors can expect positive cash flow without the need for premium units. This scenario is particularly favorable for investors looking to maximize returns on their properties.
To further analyze the investment potential, consider the median home value in ZIP 46103, which stands at $192,111. This yields a rent-to-price ratio of approximately 0.5%, implying that rental income is a small fraction of the property's value. However, this ratio does not fully capture the financial benefits of having voucher tenants, who provide consistent and government-backed rental payments.
The data on days on market (DOM) and price-cut share is not available for this ZIP code, but given the positive cash flow dynamics, it suggests that the stability of rental income could outweigh the need for rapid sales or frequent price adjustments. Investors should focus on maintaining properties to ensure they meet the requirements for accepting voucher tenants, thereby securing steady income.
The strongest investor angle in ZIP 46103 is cashflow. The substantial difference between the HUD FMR and the market rent ensures a reliable source of positive cash flow, making it an attractive option for landlords and small-portfolio investors interested in Section 8 properties.
Data Sources: FMR data from HUD (2027). 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.