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 | $1,080 |
| 1 Bedroom | $1,220 |
| 2 Bedrooms | $1,400 |
| 3 Bedrooms | $1,810 |
| 4 Bedrooms | $2,210 |
| 5 Bedrooms | $2,564 |
| 6 Bedrooms | $2,872 |
| 7 Bedrooms | $3,102 |
| 8 Bedrooms | $3,257 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,220 | $114,309 | 1.07% | B |
| 2BR | $1,400 | $132,927 | 1.05% | B |
| 3BR | $1,810 | $182,231 | 0.99% | C |
| 4BR | $2,210 | $287,531 | 0.77% | D |
| 5BR | $2,564 | $499,222 | 0.51% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 46208 in Indianapolis, Indiana, for fiscal year 2024 is set at $1210. This figure represents the maximum amount that a landlord can charge a Section 8 tenant for rent, based on the area's median rental costs. It is important to note that this is not your actual rent; it is a benchmark used by the Housing Choice Voucher program to determine payment standards.
In comparison, the Zillow Observed Rent Index (ZORI), which reflects the average rent prices in the area, stands at $1410. This suggests that landlords participating in the Section 8 program will receive less than the market rate for renting out properties in ZIP 46208. The difference between the FMR and the ZORI is approximately $200 per month.
The renter share in ZIP 46208 is 44.1%, indicating a significant portion of the population relies on rental housing. This high percentage signals strong demand for rental properties, including those that accept Section 8 vouchers. However, landlords should be aware that the payment standard is lower than typical market rates.
If you're considering purchasing a property to rent under Section 8, the median home value in ZIP 46208 is around $176,802. This figure can help you estimate the acquisition cost of a property suitable for Section 8 tenants. Keep in mind that this does not account for additional expenses such as maintenance, insurance, or property taxes.
Before committing to a Section 8 rental, verify that the property meets all necessary inspection criteria. The Housing Authority conducts thorough inspections to ensure that homes are safe and habitable. Failure to meet these requirements can result in disqualification from the program, even if the property is otherwise desirable.
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.