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 | $1,100 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,420 |
| 3 Bedrooms | $1,840 |
| 4 Bedrooms | $2,240 |
| 5 Bedrooms | $2,598 |
| 6 Bedrooms | $2,910 |
| 7 Bedrooms | $3,143 |
| 8 Bedrooms | $3,300 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,420 | $165,702 | 0.86% | C |
| 3BR | $1,840 | $199,910 | 0.92% | C |
| 4BR | $2,240 | $232,969 | 0.96% | C |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 46107, Beech Grove, IN, Marion County, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $1220 per month for fiscal year 2024. This figure represents the maximum amount that the government will pay toward rent for a Section 8 voucher holder in this area.
In comparison, the local market rent for a similar unit, as indicated by ZORI (Zillow Observed Rent Index), stands at $1348. This means landlords can expect a slight difference between the market rate and the SAFMR when renting to tenants with vouchers.
A voucher holder's rent payment is calculated based on their income. Typically, they must pay 30% of their adjusted monthly income towards rent. For a two-bedroom unit priced at the SAFMR of $1220, if a tenant's portion is, for example, $366 (assuming an income where 30% is this amount), then the government would cover the remainder, which is $854 in this scenario.
Utility allowances vary but are generally modest. These allowances do not significantly affect the total reimbursement amount. Therefore, landlords should focus primarily on the rent component when assessing their net income from a Section 8 tenant.
Given the SAFMR of $1220 and the local market rent of $1348, landlords accepting Section 8 vouchers for a two-bedroom unit in ZIP 46107 will experience a reimbursement gap of $128 per month. This gap is the difference between what the market rents at and what the government will reimburse under the SAFMR guidelines. It is important to note that this gap does not account for any potential increases in market rent or changes in voucher rates beyond the current figures.
To summarize, landlords in ZIP 46107 can expect a reimbursement of up to $1220 for a two-bedroom unit, with the tenant paying a portion based on their income. The SAFMR applies specifically to this ZIP code, setting a fixed ceiling for government reimbursement. Landlords will have to manage the $128 shortfall themselves, or consider it part of their investment strategy in subsidized housing.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.