Section 8 Fair Market Rent (FMR) for ZIP 46111 - 2027

Investment Score for ZIP 46111

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,070
1 Bedroom	$1,210
2 Bedrooms	$1,380
3 Bedrooms	$1,790
4 Bedrooms	$2,180
5 Bedrooms	$2,529
6 Bedrooms	$2,832
7 Bedrooms	$3,059
8 Bedrooms	$3,212

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$1,790	$210,949	0.85%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Based on the data provided, ZIP 46111 in the Indianapolis-Carmel, IN HUD Metro FMR Area, is best suited as a **cash-flow anchor** within a Section 8 portfolio strategy. The Fair Market Rent (FMR) for ZIP 46111 in fiscal year 2024 is $1,280 for a two-bedroom apartment. In contrast, the market rent for the same type of unit is significantly lower at $587. This substantial spread indicates that landlords can expect a higher rental income from Section 8 tenants compared to market-rate renters, thus providing a stable cash flow.

The median home value in ZIP 46111 is $191,292, which is relatively low compared to other areas in the Indianapolis-Carmel region. However, the median income is $74,167, suggesting that residents have sufficient financial stability to support a strong demand for affordable housing.

Despite the favorable cash flow, it's important to note that the appreciation potential in ZIP 46111 is limited. There are no specific figures provided for price-cut shares or days on market (DOM), but the lack of such data points to a steady market rather than one experiencing rapid growth or decline.

Furthermore, the ZIP code has a renter share of 21.8%, indicating that a significant portion of the population is already renting. This makes it an ideal location for landlords focused on maximizing cash flow through Section 8 vouchers. By leveraging the higher FMR payments, landlords can achieve better returns than what the market rent alone would provide.

In summary, ZIP 46111 should be considered a cash-flow anchor in a Section 8 portfolio due to the substantial difference between the FMR and market rent, ensuring consistent and reliable income for landlords.

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.