Section 8 Fair Market Rent (FMR) for ZIP 46140 - 2027

Investment Score for ZIP 46140

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	$1,100
1 Bedroom	$1,240
2 Bedrooms	$1,430
3 Bedrooms	$1,850
4 Bedrooms	$2,260
5 Bedrooms	$2,622
6 Bedrooms	$2,937
7 Bedrooms	$3,172
8 Bedrooms	$3,331

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,240	$147,438	0.84%	C
2BR	$1,430	$211,835	0.68%	D
3BR	$1,850	$282,733	0.65%	D
4BR	$2,260	$343,192	0.66%	D
5BR	$2,622	$378,844	0.69%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 46140 (Greenfield, IN) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 46140, as set by HUD for 2026, is $1370 for a two-bedroom unit. This amount represents 19.8% of the median household income in Greenfield, which stands at $83,056. The FMRs for other bedroom types are as follows: $1040 for a zero-bedroom unit, $1180 for a one-bedroom unit, $1770 for a three-bedroom unit, and $2170 for a four-bedroom unit. In comparison to actual rents, the FMRs are significantly lower than the Zillow median price for a two-bedroom unit, which is $208,843. This indicates that the FMRs are likely below the market rent levels, creating a challenge for voucher holders who may struggle to find units that accept their vouchers due to the low FMR compared to market rates. The price-to-FMR ratio for a two-bedroom unit is 12.7x, meaning that the market price is over 12 times higher than the FMR. This high ratio suggests that landlords might be hesitant to accept Section 8 vouchers, as they would receive less rental income than the market rate. #### Affordability & Renter Profile The population of Greenfield is 43,511, with 26.1% of residents being renters. The occupancy rate is 97.7%, indicating a very tight rental market with few vacancies. Given the median household income of $83,056, the FMRs are relatively affordable for most residents. However, the high price-to-FMR ratio suggests that the market is not particularly favorable for those relying solely on Section 8 vouchers. The typical renter in Greenfield is likely to be employed, given the median income level, but still reliant on the Section 8 program to afford housing. With only 26.1% of the population renting, the market is not oversupplied; instead, it is competitive, with many potential tenants vying for limited rental properties. This tight market condition could make it difficult for voucher holders to secure housing, especially if landlords prefer market-rate tenants. #### Investor Angle From an investor’s perspective, the ZIP code 46140 presents both opportunities and challenges. The Zillow median price for a two-bedroom unit is $208,843, while the FMR is $1370. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical rental yields and expenses associated with property management. Given the high occupancy rate of 97.7%, there is a strong demand for rental properties, which can help ensure steady cash flow. However, the low FMR compared to market rates means that investors will have to carefully manage their expenses to maintain profitability. For instance, a two-bedroom unit priced at the FMR of $1370 would need to cover all costs, including mortgage payments, property taxes, insurance, maintenance, and management fees. If these costs exceed $1370 per month, the property would not be cash-flow positive at the FMR. To gauge the investment grade, we can look at the Zillow median price and the FMR. At a Zillow median price of $208,843, an investor would need to ensure that the monthly rental income at FMR covers the mortgage payment and other expenses. Assuming a conservative mortgage rate of 5% and a loan-to-value ratio of 80%, the monthly mortgage payment for a two-bedroom unit would be approximately $950. Adding property taxes, insurance, and maintenance costs, the total monthly expenses could easily exceed $1370, making the investment challenging without additional subsidies or market-rate tenants. #### Specific Actionable Insights 1. **Focus on Market-Rate Tenants**: Given the high price-to-FMR ratio, investors should consider targeting market-rate tenants rather than exclusively relying on Section 8 vouchers. This strategy would allow for higher rental income and potentially better cash flow. For example, a two-bedroom unit priced at $1370 (FMR) would not cover typical expenses, whereas pricing it closer to the market rate of around $1700-$1800 could provide a more sustainable income stream. 2. **Seek Subsidies and Partnerships**: Investors looking to work with Section 8 vouchers should explore additional subsidies and partnerships with local government agencies or non-profits. These organizations might offer programs that supplement the FMR, making it more feasible to operate at the FMR level. Additionally, understanding the local regulations and incentives for accepting Section 8 vouchers can help mitigate some of the financial risks. 3. **Diversify Property Types**: While the FMR for a two-bedroom unit is $1370, which is 19.8% of the median income, the FMR for a one-bedroom unit is $1180. Diversifying the portfolio to include smaller units can increase the likelihood of finding tenants who can afford the rent through Section 8 vouchers. Smaller units are often more affordable and may attract a broader range of tenants. #### Bottom Line Based on the provided data, the recommendation for Section 8-focused investors in ZIP code 46140 is to **Skip** this market. The high price-to-FMR ratio and the tight rental market suggest that it would be challenging to achieve positive cash flow solely based on FMR. Instead, investors should consider areas where the FMR is closer to the market rent or where there are more generous subsidy programs available. Alternatively, focusing on market-rate rentals or diversifying the property type mix might be more viable strategies in this ZIP code.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.