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 | $1,450 |
| 1 Bedroom | $1,630 |
| 2 Bedrooms | $1,870 |
| 3 Bedrooms | $2,420 |
| 4 Bedrooms | $2,950 |
| 5 Bedrooms | $3,422 |
| 6 Bedrooms | $3,833 |
| 7 Bedrooms | $4,140 |
| 8 Bedrooms | $4,347 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,870 | $228,197 | 0.82% | C |
| 3BR | $2,420 | $289,609 | 0.84% | C |
| 4BR | $2,950 | $405,078 | 0.73% | D |
| 5BR | $3,422 | $458,693 | 0.75% | D |
U.S. Census Bureau data (2024)
Greenwood, Indiana, specifically the 46143 ZIP code, operates as a mature suburban hub within Johnson County, characterized by a strong mix of retail convenience and residential stability. The area is defined by its proximity to the Greenwood Park Mall, a major regional economic driver that supports significant local employment and service sector jobs. The neighborhood fabric is largely suburban, offering families access to well-regarded parks and a straightforward commute into downtown Indianapolis via U.S. 31, making it a practical base for workers seeking value outside the core city.
From a strictly numerical standpoint, Greenwood presents a tight but navigable investment environment. The HUD SAFMR for a 2-bedroom unit stands at $1,530, while current market rents (Zillow ZORI) average $1,633, creating a modest gap of $103 where vouchers slightly trail the open market. With a median home value of $331,793 and properties sitting on the market for a median of 65 days, acquisition costs are moderate. Investors looking at the FY2026 FMR ladder will note that 3-bedroom units command significantly higher payments at $2,290, suggesting better leverage for larger family rentals compared to the saturated 2-bedroom segment.
Demand fundamentals here are bolstered by a median household income of $91,496 and a renter share of 31.8%, indicating a population that can generally support housing costs but still requires rental supply. The local school district, Greenwood Community School Corporation, maintains a solid reputation which helps sustain family retention. For Section 8 landlords, this income profile suggests a tenant pool that, while lower-income than the median homeowner, is likely to have stable employment from the local logistics and retail sectors, reducing the risk of prolonged vacancies.
The Section 8 verdict for 46143 leans toward stability and long-term appreciation over aggressive immediate cashflow. Because the 2-bedroom voucher rate is slightly below market, maximizing returns requires targeting the 3- and 4-bedroom FMR tiers where the subsidy outpaces standard market pricing. With days on market averaging over two months, the area is not a rapid-flip zone, but the high home values and consistent local employment suggest that acquiring property here secures a reliable, appreciating asset with a dependable, income-qualified tenant base.
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.