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 | $990 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,660 |
| 4 Bedrooms | $2,020 |
| 5 Bedrooms | $2,343 |
| 6 Bedrooms | $2,624 |
| 7 Bedrooms | $2,834 |
| 8 Bedrooms | $2,976 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,110 | $103,979 | 1.07% | B |
| 2BR | $1,280 | $155,809 | 0.82% | C |
| 3BR | $1,660 | $235,765 | 0.7% | D |
| 4BR | $2,020 | $303,913 | 0.66% | D |
| 5BR | $2,343 | $352,847 | 0.66% | D |
U.S. Census Bureau data (2024)
The ZIP code 46176, located in Shelbyville, Indiana, is characterized by a significant rental population, with 35.6% of the residents being renters. This indicates that it is indeed a renter-heavy area, which can translate into a robust demand for housing vouchers under the Section 8 program. Given the total population of 28,782, approximately 10,259 individuals are likely to be part of the rental market, providing a substantial pool of potential tenants.
The median household income in this ZIP code is $65,182, which is crucial for understanding the affordability of housing. The typical market rent stands at $1,420 per month, representing about 21.7% of the median household income. This percentage suggests that rent is a significant portion of the average income, making affordable housing options highly desirable for many residents.
To further analyze the situation, we compare the market rent to the Fair Market Rent (FMR), which is set at $1,160 per month for FY 2024. The FMR is a benchmark used by the U.S. Department of Housing and Urban Development (HUD) to determine the maximum amount of rental assistance payments for the Section 8 program. With the market rent exceeding the FMR by $260, landlords may find that they need to adjust their expectations regarding the rental income they receive from Section 8 vouchers.
The kind of tenant profile a landlord in ZIP 46176 should expect includes individuals and families who rely on Section 8 vouchers due to the high cost of living relative to income. These tenants will likely be seeking apartments or houses that are priced closer to the FMR to maximize their housing budget. Landlords must be prepared to accept a lower rent payment than the market rate if they wish to attract and retain these voucher holders.
In conclusion, ZIP 46176 presents itself as an area with strong demand for affordable rental housing, driven by a sizable rental population and relatively high rents compared to the median income. Landlords should anticipate a tenant base that heavily depends on Section 8 vouchers to manage their housing costs effectively.
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.