Location: Rush County, 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 | $1,030 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,730 |
| 4 Bedrooms | $2,100 |
| 5 Bedrooms | $2,436 |
| 6 Bedrooms | $2,728 |
| 7 Bedrooms | $2,946 |
| 8 Bedrooms | $3,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,340 | $171,688 | 0.78% | D |
| 3BR | $1,730 | $278,778 | 0.62% | D |
| 4BR | $2,100 | $337,588 | 0.62% | D |
U.S. Census Bureau data (2024)
ZIP code 46161, located in Morristown, Indiana, hosts a population of 2,347 residents. With 25.5% of the population being renters, this area leans towards a mix of homeowners and renters rather than being predominantly renter-heavy. The median household income stands at $78,603, which provides a benchmark for evaluating the affordability of housing.
The average market rent in this area is $974 per month. To put this into perspective, typical rent consumes approximately 12.4% of the median household income. This calculation is derived from dividing the annualized rent ($974 * 12 months = $11,688) by the median household income ($78,603). While this percentage is reasonable, it still leaves a significant portion of income allocated to housing costs.
Comparing the market rent to the Fair Market Rent (FMR) set by HUD, which is $1,230 for FY 2024, indicates that the current market rent is below the FMR. This suggests that landlords can potentially increase their rental rates without exceeding the affordability threshold set by the government. However, it also implies that there might be a scarcity of vouchers relative to the demand, given the lower market rent compared to the FMR.
A landlord in ZIP 46161 should expect tenants who are likely to be reliant on Section 8 vouchers due to the economic realities of the area. These tenants will typically have incomes that fall within the guidelines set by the housing authority, ensuring they do not exceed 50% of the area's median income. Given the income levels and the rental rates, these tenants will find the cost of renting to be a manageable part of their budget.
To summarize, while ZIP 46161 has a moderate number of renters, the income levels suggest that typical rents are affordable but still represent a considerable expense. Landlords should prepare for a tenant pool that includes those who require Section 8 assistance to cover the cost of living in this area.
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.