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 | $920 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,880 |
| 5 Bedrooms | $2,181 |
| 6 Bedrooms | $2,443 |
| 7 Bedrooms | $2,638 |
| 8 Bedrooms | $2,770 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,540 | $332,148 | 0.46% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 46110 provides insight into potential investment returns for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a 2-bedroom apartment in this area for fiscal year 2024 is set at $1130 annually. Given the median home value in ZIP 46110 is $307,870, we can calculate the implied gross yield for a Section 8 property.
To derive the gross yield, we use the formula: Gross Yield = Annual Income / Property Value. In this case, the annual income is based on the FMR for a 2-bedroom unit. Therefore, the implied gross yield for a Section 8 property in ZIP 46110 is calculated as follows:
$1130 / $307,870 = 0.00367 or approximately 0.37%.
However, it's important to note that the market rent for ZIP 46110 is currently listed as N/A, indicating that there isn't sufficient data to determine the typical market rent for a 2-bedroom apartment in this area. If we hypothetically assume a market rent rate, we would need that figure to calculate an alternative gross yield scenario. Without a specific market rent, we cannot provide a meaningful comparison to the Section 8 scenario.
The low renter density of 0.0% suggests that there is little demand for rental properties in ZIP 46110, which could impact the likelihood of finding tenants for any rental units, including those participating in the Section 8 program. Additionally, the lack of Days on Market (DOM) data further complicates the analysis, as it would be useful to understand how quickly rental units are typically filled in this area.
In conclusion, the implied gross yield for a Section 8 property in ZIP 46110 is approximately 0.37%, based on the annualized 2BR FMR of $1130 and a median home value of $307,870. Due to the absence of market rent data and the low renter density, this yield is likely the most realistic scenario for investment returns in this ZIP code. Investors should proceed with caution and conduct thorough local market research before making any investment decisions.
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.