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 | $1,230 |
| 1 Bedroom | $1,380 |
| 2 Bedrooms | $1,590 |
| 3 Bedrooms | $2,060 |
| 4 Bedrooms | $2,510 |
| 5 Bedrooms | $2,912 |
| 6 Bedrooms | $3,261 |
| 7 Bedrooms | $3,522 |
| 8 Bedrooms | $3,698 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,380 | $153,104 | 0.9% | C |
| 2BR | $1,590 | $194,461 | 0.82% | C |
| 3BR | $2,060 | $277,907 | 0.74% | D |
| 4BR | $2,510 | $368,851 | 0.68% | D |
| 5BR | $2,912 | $566,069 | 0.51% | F |
U.S. Census Bureau data (2024)
The ZIP code 46205 in Indianapolis, IN, presents a dynamic rental market that reflects both current conditions and underlying trends. With a Fair Market Rent (FMR) set at $1350 for fiscal year 2024, it aligns closely with the actual market rent as indicated by the Zillow Observed Rent Index (ZORI) at $1,351. This parity suggests a balanced market where the government's assessment of rental values mirrors what tenants are actually paying.
The 0.3% price-cut share reveals that landlords rarely need to reduce their asking rents to attract tenants, indicating a strong demand for rental properties. Similarly, the average days on market (DOM) of 42 days shows that properties are quickly rented out, further supporting the notion of high demand relative to supply. These figures suggest that in 46205, demand likely outpaces supply, leading to a competitive rental environment where landlords have relatively little incentive to lower their rates.
The median home value in the area stands at $253,403, which can be compared against the rental metrics to gauge the affordability and desirability of homeownership versus renting. Given the 46.3% renter share, it is evident that a significant portion of the population prefers or is compelled to rent rather than own. This high percentage of renters implies sustained long-term housing pressure, as a large number of residents will continue to seek rental units, potentially driving up demand and rental prices over time.
In summary, ZIP 46205 operates under the influence of robust rental demand, with a slight edge towards demand over supply. The high renter share underscores a consistent need for rental properties, making it a viable and attractive market for landlords and small-portfolio investors who aim to capitalize on these dynamics without engaging in speculative forecasts.
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.