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 | $1,160 |
| 1 Bedroom | $1,300 |
| 2 Bedrooms | $1,500 |
| 3 Bedrooms | $1,940 |
| 4 Bedrooms | $2,370 |
| 5 Bedrooms | $2,749 |
| 6 Bedrooms | $3,079 |
| 7 Bedrooms | $3,325 |
| 8 Bedrooms | $3,491 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,300 | $163,640 | 0.79% | D |
| 2BR | $1,500 | $207,686 | 0.72% | D |
| 3BR | $1,940 | $271,645 | 0.71% | D |
| 4BR | $2,370 | $340,920 | 0.7% | D |
| 5BR | $2,749 | $393,834 | 0.7% | D |
U.S. Census Bureau data (2024)
The ZIP code 46131, located in Franklin, IN, presents a dynamic housing market influenced by both rental and ownership sectors. The Fair Market Rent (FMR) for the area, set at $1,300 for zip FY 2024, is notably lower than the actual market rent, which stands at $1,739 according to ZORI. This gap suggests that there is a strong demand for rental properties, as the market is willing to pay more than the FMR. The 28.4% renter share indicates a significant portion of the population opts for renting rather than owning, signaling ongoing housing pressure as renters compete for limited units.
The median home value in ZIP 46131 is $279,580, reflecting a balance between affordability and the local economy's strength. The fact that only 0.4% of listings are currently being offered at a discount implies that sellers are generally confident in their property values and that demand for homes remains steady. Additionally, the 29-day Days on Market (DOM) suggests that homes are selling relatively quickly, further supporting the idea that demand is robust.
In this context, it is evident that demand for housing, particularly rentals, exceeds supply. The higher market rent compared to the FMR and the quick turnover of listings point towards a market where tenants and buyers are actively seeking properties, creating a competitive environment. Landlords and small-portfolio investors can leverage this trend by ensuring their properties meet the quality standards expected by the market, thereby attracting tenants willing to pay above the FMR. For those considering the purchase of rental properties, the current conditions suggest a favorable climate where rental income is likely to be stable and potentially increasing.
The high renter share also points to a potential long-term trend of sustained housing pressure. As the number of renters grows, so does the competition for available rental units, which could lead to continued upward pressure on rents. This dynamic benefits landlords who maintain well-managed properties, as they are positioned to capitalize on the strong rental market without needing to cut prices significantly.
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.