Section 8 Fair Market Rent (FMR) for ZIP 46163 - 2027

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

Investment Score for ZIP 46163

Monthly Rent (2BR)

$1,430

Median Price (2BR)

$283,255

1% Rule

0.5%

Annual Yield

6.06%

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	$1,110
1 Bedroom	$1,240
2 Bedrooms	$1,430
3 Bedrooms	$1,850
4 Bedrooms	$2,260
5 Bedrooms	$2,622
6 Bedrooms	$2,937
7 Bedrooms	$3,172
8 Bedrooms	$3,331

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
2BR	$1,430	$283,255	0.5%	F
3BR	$1,850	$356,276	0.52%	F
4BR	$2,260	$421,388	0.54%	F
5BR	$2,622	$436,403	0.6%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

14,498

Median Household Income

$113,106

Housing Units

5,484

Renter Percentage

6.6%

Occupancy Rate

98.0%

Renter Occupied

357

The ZIP code 46163, located in New Palestine, IN, within the Indianapolis-Carmel, IN HUD Metro FMR Area, presents an interesting opportunity for inclusion in a Section 8 portfolio strategy. Specifically, this area serves best as a cash-flow anchor due to the favorable spread between the Fair Market Rent (FMR) and the actual market rent.

In fiscal year 2024, the HUD FMR for ZIP 46163 is set at $1160 for a one-bedroom unit. In contrast, the market rent stands at $1060, indicating a $100 positive spread in favor of the landlord. This means that landlords can benefit from a guaranteed rental income that exceeds the local market rate, providing a solid foundation for cash flow stability within their investment portfolios.

Cash Flow Stability: The $100 difference between the FMR and the market rent ensures that landlords receive higher payments than what they would typically get from private tenants. This makes ZIP 46163 a reliable source of income, especially when considering the median home value of $379,178, which suggests a stable housing market.
Economic Context: With a median income of $113,106, residents of this area have the financial capacity to afford higher rents, but the Section 8 program allows landlords to capture a higher rental rate without the risk of non-payment.
Rental Demand: The 6.6% renter share indicates a moderate demand for rentals, making it less speculative compared to areas with a higher percentage of renters.

While the 0.4% price-cut share and N/A-day Days on Market (DOM) suggest limited potential for rapid appreciation, the primary value of ZIP 46163 lies in its ability to provide consistent and above-market rental income. This makes it an ideal candidate for anchoring a portfolio's cash flow, ensuring that even if other investments experience volatility, the Section 8 properties in this ZIP will continue to deliver predictable returns.

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.