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 | $800 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,040 | $183,654 | 0.57% | F |
| 3BR | $1,350 | $275,917 | 0.49% | F |
| 4BR | $1,640 | $397,224 | 0.41% | F |
U.S. Census Bureau data (2024)
The real estate market in ZIP 46126, Fairland, IN, presents a nuanced scenario for landlords and small-portfolio investors. The median home value stands at $268,010, indicating a stable housing market. However, the absence of percentage data on listings that have been reduced and the median days on market (DOM) suggests that there is limited recent activity or changes in the housing market. This could imply that the market is neither overheating nor cooling rapidly, which stabilizes expectations around property values.
On the rental side, the Fair Market Rent (FMR) for ZIP 46126 is set at $960 for fiscal year 2024, while the current market rent as per the Census ACS is $988. This slight discrepancy signals that rental prices are marginally above the government's benchmark, suggesting a slightly stronger demand for rentals compared to the subsidized housing market. Landlords should be aware that this may influence the rental market dynamics, potentially leading to a competitive environment where maintaining or slightly increasing rents can attract tenants.
For long-term investors, the setup implied by the data suggests a cautious approach to appreciation expectations. With the median home value remaining steady and no significant trends in listing reductions or DOM, the potential for rapid price increases is limited. Instead, investors should focus on the stable income from rentals and the modest appreciation that might occur over time, driven by general economic conditions rather than local market fluctuations. The slight premium in market rent over FMR supports a strategy focused on rental yields rather than speculative gains.
To summarize, the current market conditions in Fairland, IN, indicate a balanced real estate environment. Median home values are stable, and the rental market shows a marginal premium over government benchmarks. This suggests that landlords and small-portfolio investors should expect steady returns rather than explosive growth, aligning their strategies with long-term stability and modest appreciation.
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.