Section 8 Fair Market Rent (FMR) for ZIP 46124 - 2027

Location: Indianapolis-Carmel, IN | Metro: Columbus, IN MSA

Investment Score for ZIP 46124

Monthly Rent (2BR)

$1,080

Median Price (2BR)

$174,445

1% Rule

0.62%

Annual Yield

7.43%

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	$850
1 Bedroom	$940
2 Bedrooms	$1,080
3 Bedrooms	$1,380
4 Bedrooms	$1,680
5 Bedrooms	$1,949
6 Bedrooms	$2,183
7 Bedrooms	$2,358
8 Bedrooms	$2,476

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
2BR	$1,080	$174,445	0.62%	D
3BR	$1,380	$239,098	0.58%	F
4BR	$1,680	$319,847	0.53%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

7,304

Median Household Income

$64,466

Housing Units

3,166

Renter Percentage

31.5%

Occupancy Rate

93.7%

Renter Occupied

934

To determine if you should buy in ZIP 46124 (Edinburgh, IN) for Section 8 investments, follow this decision tree:

Step 1: Does the Fair Market Rent (FMR) of $1000 cover the debt service on a property valued at $227,620?

Yes. If the FMR of $1000 per month is sufficient to cover the mortgage payment and other costs associated with owning a property valued at $227,620, then the investment is financially viable under Section 8 guidelines.
No. If the FMR of $1000 does not cover the debt service on a $227,620 property, then investing in this area for Section 8 purposes would result in financial loss.

Step 2: How does the market rent of $850 compare to the FMR?

Above FMR. If the market rent exceeds the FMR, then there is an opportunity for landlords to charge higher rents outside of Section 8, which can be beneficial for maximizing returns.
At FMR. If the market rent is exactly $1000, landlords can expect to charge rents that align with the FMR, making the property suitable for Section 8 tenants without any financial strain.
Below FMR. If the market rent is below the FMR, landlords might face challenges in finding non-Section 8 tenants willing to pay the higher rate, thus relying heavily on Section 8 vouchers to fill vacancies.

Step 3: Is there enough demand with 31.5% renters and N/A-day days on market (DOM)?

It Depends. With 31.5% of the population being renters, there is a significant portion of the market that could be interested in Section 8 housing. However, the lack of data on days on market (DOM) makes it difficult to assess how quickly properties are rented out. A lower DOM would indicate strong demand, while a higher DOM suggests slower rental activity.

In conclusion, the viability of purchasing a property in ZIP 46124 for Section 8 investments hinges on the ability of the FMR to cover debt service, the comparison between market rent and FMR, and the level of rental demand. Landlords must evaluate these factors carefully to make informed 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.