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 | $1,720 |
| 1 Bedroom | $1,930 |
| 2 Bedrooms | $2,220 |
| 3 Bedrooms | $2,880 |
| 4 Bedrooms | $3,500 |
| 5 Bedrooms | $4,060 |
| 6 Bedrooms | $4,547 |
| 7 Bedrooms | $4,911 |
| 8 Bedrooms | $5,157 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,930 | $211,098 | 0.91% | C |
| 2BR | $2,220 | $373,505 | 0.59% | F |
| 3BR | $2,880 | $589,230 | 0.49% | F |
U.S. Census Bureau data (2024)
ZIP code 46204, located in Indianapolis, IN, falls within the larger Indianapolis-Carmel, IN HUD Metro FMR Area. Its Fair Market Rent (FMR) for FY 2024 is set at $1,970, which is notably higher than the average market rent of $1,590. This suggests that 46204 is positioned as a premium sub-market within its metro area, where rents are above the typical levels.
The median home value in 46204 stands at $342,435, indicating a moderate housing cost compared to other ZIP codes in the Indianapolis-Carmel, IN HUD Metro FMR Area. However, the high renter share of 85.9% is a critical factor. In general, a high renter share with lower-than-metro-average home values can signal an attractive area for Section 8 tenants and landlords who cater to this demographic. Despite the higher FMR, the substantial renter population in 46204 makes it a viable option for landlords seeking stable tenant bases through government-subsidized housing programs.
In contrast to the broader metro area, 46204 exhibits characteristics that define it as a unique sub-market. The elevated FMR coupled with a significant renter share points towards a location that is both desirable and accessible to those relying on rental assistance. Landlords and small-portfolio investors should consider these factors when evaluating the potential returns and stability of properties in this ZIP code.
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.