Location: Putnam 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 | $1,590 |
| 1 Bedroom | $1,790 |
| 2 Bedrooms | $2,070 |
| 3 Bedrooms | $2,700 |
| 4 Bedrooms | $3,280 |
| 5 Bedrooms | $3,805 |
| 6 Bedrooms | $4,262 |
| 7 Bedrooms | $4,603 |
| 8 Bedrooms | $4,833 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,070 | $223,609 | 0.93% | C |
| 3BR | $2,700 | $360,356 | 0.75% | D |
U.S. Census Bureau data (2024)
The rent math for ZIP 46165, located in North Salem, IN, within the Putnam County, IN metro area, does not align favorably. The Fair Market Rent (FMR) set at $1,280 for the fiscal year 2024 contrasts sharply with the market rent reported by the Census ACS, which stands at $1,613. This indicates that landlords may struggle to cover costs and maintain profitability if they adhere strictly to the FMR guidelines.
Regarding the affordability of acquisitions, the median home value in ZIP 46165 is $348,447. However, with no available data on days on market (DOM) or the percentage of homes needing price cuts, it's challenging to assess the ease of acquiring properties at favorable terms. Landlords should conduct thorough due diligence to ensure they can secure properties without overpaying.
Tenant demand is relatively low in ZIP 46165, with a total population of 1,992 and only 8.1% of residents being renters. This suggests a limited pool of potential tenants, which could lead to higher vacancy rates and difficulty in maintaining consistent rental income.
In summary, while the acquisition cost is clear at $348,447, the mismatch between FMR and market rent, coupled with a low renter share, presents significant challenges for landlords and small-portfolio investors in ZIP 46165. The limited tenant base and lower-than-market rents required by HUD subsidies make this area less attractive for investment, especially for those seeking to maximize returns.
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.