Section 8 Fair Market Rent (FMR) for ZIP 46142 - 2027

Location: Indianapolis-Carmel, IN | Metro: Indianapolis-Carmel, IN HUD Metro FMR Area

Investment Score for ZIP 46142

D
Monthly Rent (2BR)
$1,450
Median Price (2BR)
$233,334
1% Rule
0.62%
Annual Yield
7.46%

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$1,120
1 Bedroom$1,260
2 Bedrooms$1,450
3 Bedrooms$1,880
4 Bedrooms$2,290
5 Bedrooms$2,656
6 Bedrooms$2,975
7 Bedrooms$3,213
8 Bedrooms$3,374

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
2BR $1,450 $233,334 0.62% D
3BR $1,880 $305,717 0.61% D
4BR $2,290 $379,148 0.6% D
5BR $2,656 $461,344 0.58% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
34,348
Median Household Income
$89,001
Housing Units
14,221
Renter Percentage
29.4%
Occupancy Rate
95.4%
Renter Occupied
3,988

The real estate landscape in ZIP 46142, Greenwood, IN, presents a balanced market with implications for both pricing power and long-term investment strategies. The median home value stands at $317,806, indicating a stable residential property base. This stability is further reinforced by the fact that only 0.2% of listings have seen price reductions, a figure that suggests sellers maintain strong pricing leverage. Additionally, the median days on market (DOM) of 23 days points to an efficient market where homes are quickly sold, often at or near asking price, reflecting a high demand for properties in this area.

For landlords and small-portfolio investors, the interplay between rental and home values is critical. The Fair Market Rent (FMR) for ZIP 46142 for fiscal year 2024 is projected at $1,290, while the Zillow Observed Rent Index (ZORI) currently stands at $1,506. This gap signals a robust rental market, with actual rents exceeding government estimates. Landlords can thus expect steady occupancy rates and potentially upward pressure on rental prices, which aligns with the strong demand observed in the sales market.

The data also suggests a scenario where long-hold investors might benefit from modest appreciation. With a low percentage of listings reducing their prices and a brisk sales pace, it's reasonable to infer that the local economy supports housing demand, likely driven by employment opportunities and a favorable cost of living. However, the setup does not indicate explosive growth but rather a gradual increase in home values, contingent upon broader economic conditions and local job market trends.

In conclusion, the current metrics point to a resilient market in Greenwood, IN, where landlords and investors can maintain competitive rental prices and anticipate moderate home value increases over the next 12-24 months. The strong sales market and the healthy rental environment create a solid foundation for those looking to hold onto their investments for the long term.

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.