Location: Henry County, 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 | $950 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,780 |
| 5 Bedrooms | $2,065 |
| 6 Bedrooms | $2,313 |
| 7 Bedrooms | $2,498 |
| 8 Bedrooms | $2,623 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,530 | $287,564 | 0.53% | F |
U.S. Census Bureau data (2024)
The ZIP code 46117 presents an interesting scenario for both renters and landlords. The median household income stands at $91,250, which provides a solid financial foundation for residents. However, without specific market rate figures, it's challenging to assess the exact affordability gap faced by renters. What we do know is that the Fair Market Rent (FMR) for the area, as set by HUD for fiscal year 2024, is $1210. This figure represents the benchmark for Section 8 voucher payments.
Given the population of 527 and the relatively low percentage of renters at 11.5%, competition among landlords is likely to be moderate. The limited number of renters means that landlords must carefully consider their pricing strategies to attract tenants. For those relying on cash-paying tenants, the higher median income suggests that there could be a willingness to pay above the FMR, potentially offering landlords higher rents compared to those accepting vouchers.
However, the affordability gap becomes evident when comparing the FMR to the median income. A household earning $91,250 would find the $1210 FMR quite manageable, indicating that voucher recipients might represent a significant portion of potential tenants. Landlords who accept vouchers will have a steady stream of tenants, albeit at a fixed rate. On the other hand, landlords who target cash-paying tenants might secure higher rental incomes but face the risk of vacancy if they price too high.
Takeaway for landlords: In ZIP 46117, the decision between accepting vouchers or focusing on cash-paying tenants hinges on balancing guaranteed occupancy with the potential for higher rental rates. Given the manageable FMR relative to the median income, voucher acceptance is a viable strategy for ensuring consistent tenancy. However, for those willing to manage the risk of vacancy, targeting cash-paying tenants could offer opportunities for higher revenue.
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.