Section 8 Fair Market Rent (FMR) for ZIP 46160 - 2027

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

Investment Score for ZIP 46160

F
Monthly Rent (2BR)
$1,160
Median Price (2BR)
$285,788
1% Rule
0.41%
Annual Yield
4.87%

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$900
1 Bedroom$1,010
2 Bedrooms$1,160
3 Bedrooms$1,500
4 Bedrooms$1,830
5 Bedrooms$2,123
6 Bedrooms$2,378
7 Bedrooms$2,568
8 Bedrooms$2,696

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
1BR $1,010 $247,662 0.41% F
2BR $1,160 $285,788 0.41% F
3BR $1,500 $373,870 0.4% F
4BR $1,830 $492,497 0.37% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
6,514
Median Household Income
$76,445
Housing Units
2,813
Renter Percentage
12.2%
Occupancy Rate
91.0%
Renter Occupied
311

With a Fair Market Rent (FMR) set at $1130 for ZIP 46160 in Morgantown, IN, for fiscal year 2024, landlords can expect to align their rental prices accordingly to attract tenants eligible for Section 8 subsidies. The Census Bureau reports a market rent of $915, indicating that properties priced at or below the FMR could see increased demand from subsidized tenants. The median home value stands at $341,826, suggesting a moderate housing market where investment opportunities are balanced between affordability and value retention.

A 12.2% renter share means that nearly one out of every eight residents in Morgantown are renters, providing a steady pool of potential tenants for landlords. The median income of $76,445 offers insight into the financial capacity of local residents, although it does not directly correlate to the income levels of Section 8 participants. Despite the lack of specific data on days on market (DOM), the low price-cut share of 0.3% suggests that properties listed for sale or rent are likely to find buyers or tenants without significant reductions in asking price.

Investors should note that while the FMR of $1130 provides a benchmark for rental pricing, the actual market rent of $915 indicates a potential margin for profit when operating under the Section 8 program. The median home value of $341,826 offers a solid basis for property valuation, ensuring that investments in Morgantown can be both profitable and stable. With a renter share of 12.2%, there is a consistent demand for rental properties, which can be leveraged by landlords participating in Section 8 to ensure steady occupancy rates.

The median income figure of $76,445, while not directly relevant to Section 8 tenant eligibility, underscores the economic health of the area and supports the feasibility of maintaining rental properties. The minimal price-cut share of 0.3% further reinforces the robustness of the local real estate market, making Morgantown an attractive location for real estate investments.

Verdict: For landlords and small-portfolio investors, ZIP 46160 in Morgantown, IN, presents a favorable environment for Section 8 participation, with a strong balance between market rents and FMRs, coupled with a healthy median home value and stable economic conditions.

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.