Location: Indianapolis-Carmel, 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 | $970 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,670 |
| 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,270 | $219,135 | 0.58% | F |
| 3BR | $1,670 | $304,529 | 0.55% | F |
U.S. Census Bureau data (2024)
The analysis for the Section 8 program in ZIP code 46180, Stilesville, IN, centers around the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $1,240 per month for a one-bedroom unit. However, the current market rent in Stilesville is significantly higher at $1,675 per month, based on recent data.
This creates a gap of $435 between the FMR and the market rent, which translates to a 35% difference. This discrepancy means that landlords who accept Section 8 vouchers will be renting their properties below the open-market rate, potentially impacting their revenue.
In the context of Stilesville, where only 3.2% of the population are renters and the median home value is $286,268, the appeal of Section 8 for landlords lies in the stability it offers. Voucher tenants provide a reliable source of income, backed by government subsidies, which can be particularly attractive given the low percentage of renters in the area. Additionally, with a median household income of $90,208, many residents may find it difficult to afford rental units priced at market rates, making Section 8 an essential part of the rental landscape.
However, accepting lower rents through Section 8 can reduce the overall yield on investment properties. Landlords must weigh the benefits of guaranteed tenants against the reduced rental income. For small-portfolio investors, this decision is crucial, as it affects the cash flow and profitability of their investments.
To summarize, the gap between the FMR and market rent in Stilesville, IN, is $435 or 35%, highlighting the need for careful consideration when deciding whether to participate in the Section 8 program. While it ensures steady occupancy, it also comes with the cost of yielding less than the open-market rate.
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.