Location: Indianapolis-Carmel, IN | Metro: Indianapolis-Carmel, IN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,530 |
| 1 Bedroom | $1,720 |
| 2 Bedrooms | $1,980 |
| 3 Bedrooms | $2,570 |
| 4 Bedrooms | $3,130 |
| 5 Bedrooms | $3,631 |
| 6 Bedrooms | $4,067 |
| 7 Bedrooms | $4,392 |
| 8 Bedrooms | $4,612 |
U.S. Census Bureau data (2024)
The ZIP code 46202 is located in Indianapolis, IN, and represents a densely populated urban neighborhood with over 20,180 residents. This area stands out due to its high percentage of renters, at 70.6%, indicating a strong demand for rental properties. The median household income in this neighborhood is $63,506, suggesting a middle-class demographic capable of paying moderate rents. Median home values in ZIP 46202 are relatively high at $346,035, reflecting a mix of owner-occupied homes and rental units.
When it comes to the economics of renting in ZIP 46202, the Federal Market Rent (FMR) for the fiscal year 2024 is set at $1,640. This figure is notably higher than the market rent, which is currently estimated at $1,428 (ZORI). The discrepancy between the FMR and the ZORI highlights an opportunity for landlords and small-portfolio investors who can leverage the higher FMR to secure Section 8 tenants while still maintaining competitive market rates.
Given these conditions, ZIP 46202 is well-suited for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the area's high renter ratio and favorable FMR-to-ZORI ratio make it ideal for generating steady cash flow through Section 8 tenancy without the need for extensive property management. On the other hand, hands-on investors can benefit from the potential to increase property values and rents over time, given the existing economic parameters and the neighborhood's characteristics.
Data Sources: FMR data from HUD (2027). 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.