Location: Indianapolis-Carmel, IN | Metro: Bloomington, 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 | $1,000 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,680 |
| 4 Bedrooms | $2,050 |
| 5 Bedrooms | $2,378 |
| 6 Bedrooms | $2,663 |
| 7 Bedrooms | $2,876 |
| 8 Bedrooms | $3,020 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,130 | $165,319 | 0.68% | D |
| 2BR | $1,300 | $207,847 | 0.63% | D |
| 3BR | $1,680 | $302,424 | 0.56% | F |
| 4BR | $2,050 | $414,483 | 0.49% | F |
| 5BR | $2,378 | $508,423 | 0.47% | F |
U.S. Census Bureau data (2024)
The analysis for Section 8 properties in ZIP code 46151, located in Martinsville, Indiana, centers around the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for the fiscal year 2024 is set at $1110, while the Zero Occupancy Rate Index (ZORI), which represents the market rent, stands at $974. This creates a gap of $136, or approximately 12.2%, where landlords can potentially benefit.
The higher FMR compared to the ZORI means that landlords who accept Section 8 vouchers can charge a rate that exceeds the typical market rent. This makes it a yield play, as voucher tenants provide a guaranteed source of income at a rate above what most market-rate tenants would pay. In Martinsville, where only 19.9% of residents are renters, the demand for rental properties is lower, making the potential for higher yields through Section 8 even more attractive.
Martinsville has a median home value of $288,550 and a median income of $78,812. These figures suggest that homeownership is relatively affordable, but the income levels indicate that a significant portion of the population may still rely on rental assistance programs such as Section 8. The FMR is designed to ensure that low-income families have access to decent housing, and in ZIP 46151, it allows landlords to charge a rate that is closer to the area's economic reality without fully exploiting the system.
However, accepting housing vouchers comes with its own set of considerations. Landlords must adhere to HUD standards and undergo regular inspections, which can impose additional costs and maintenance requirements. Despite these factors, the financial incentive of receiving a higher rent than the market rate makes it a viable option for landlords and small-portfolio investors looking to maximize their returns in a market where rental demand is not as high as in more densely populated areas.
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.