Location: Indianapolis-Carmel, IN | Metro: Owen County, 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 | $1,120 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,650 |
| 4 Bedrooms | $2,030 |
| 5 Bedrooms | $2,355 |
| 6 Bedrooms | $2,638 |
| 7 Bedrooms | $2,849 |
| 8 Bedrooms | $2,991 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,280 | $229,281 | 0.56% | F |
| 3BR | $1,650 | $286,580 | 0.58% | F |
U.S. Census Bureau data (2024)
ZIP 46166, located in Paragon, Indiana, within the Indianapolis-Carmel HUD Metro FMR Area, serves as a cash-flow anchor for a Section 8 portfolio strategy. The Federal Market Rent (FMR) for ZIP 46166 in fiscal year 2024 is set at $1240, which is notably higher than the market rent of $1,102. This spread ensures that landlords participating in the Section 8 program can maintain steady, predictable cash flow without the risk of market fluctuations affecting their rental income.
The median home value in this area stands at $267,149, indicating a relatively stable housing market. While there is no specific data on price-cut shares or days on market (DOM), the absence of these figures suggests that the market is not experiencing significant volatility that would otherwise impact the reliability of cash flow. Landlords can confidently rely on the guaranteed rent payments from the government, knowing they will receive a consistent income that exceeds the typical market rent.
Additionally, the 8.2% renter share and median income of $86,042 provide further context. With a lower-than-average renter share, there is less competition from other rental properties, making it easier for landlords to attract tenants who qualify for Section 8 assistance. The median income figure also supports the idea that the local economy can sustain the demand for subsidized housing, ensuring a stable tenant pool.
In summary, ZIP 46166 is best suited as a cash-flow anchor within a Section 8 portfolio strategy due to the favorable spread between FMR and market rent, coupled with a stable housing market and a supportive local economy. This positioning allows landlords to secure reliable income streams while minimizing risks associated with market variability.
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.