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 | $1,090 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,410 |
| 3 Bedrooms | $1,830 |
| 4 Bedrooms | $2,230 |
| 5 Bedrooms | $2,587 |
| 6 Bedrooms | $2,897 |
| 7 Bedrooms | $3,129 |
| 8 Bedrooms | $3,285 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,410 | $300,595 | 0.47% | F |
| 3BR | $1,830 | $366,800 | 0.5% | F |
| 4BR | $2,230 | $510,005 | 0.44% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 46181, located in Trafalgar, Indiana, within the Johnson County and Indianapolis-Carmel HUD Metro FMR area, reveals a favorable environment for rental properties. The HUD Fair Market Rent (FMR) for the fiscal year 2024 is set at $1450, significantly higher than the average market rent of $951 reported by the Census Bureau's American Community Survey (ACS).
This disparity means that voucher tenants can easily cashflow in this area, making it an attractive option for landlords and small-portfolio investors. The median home value in ZIP 46181 is $369,051, which translates into a rent-to-price ratio of approximately 0.26%, indicating that renting is considerably cheaper than buying.
Despite the lack of specific data on the median days on market (DOM) and the percentage of price cuts, the strong rent-to-price ratio suggests that the buy-versus-rent dynamic heavily favors rental properties. This is further reinforced by the generous gap between the HUD FMR and the actual market rent, ensuring a steady income stream for landlords who accept vouchers.
In conclusion, the strongest investor angle in ZIP 46181 is cashflow, given the substantial difference between the HUD FMR and the market rent, along with the favorable rent-to-price ratio.
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.