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 | $1,380 |
| 1 Bedroom | $1,560 |
| 2 Bedrooms | $1,790 |
| 3 Bedrooms | $2,320 |
| 4 Bedrooms | $2,830 |
| 5 Bedrooms | $3,283 |
| 6 Bedrooms | $3,677 |
| 7 Bedrooms | $3,971 |
| 8 Bedrooms | $4,170 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,790 | $209,063 | 0.86% | C |
| 3BR | $2,320 | $248,838 | 0.93% | C |
| 4BR | $2,830 | $310,456 | 0.91% | C |
| 5BR | $3,283 | $386,051 | 0.85% | C |
U.S. Census Bureau data (2024)
ZIP code 46217, located in Indianapolis, IN, falls within the larger Indianapolis-Carmel, IN HUD Metro FMR Area. The Fair Market Rent (FMR) for ZIP 46217 in fiscal year 2024 is set at $1500, slightly below the market rent of $1,601. This indicates that while the FMR is a benchmark for subsidized housing, actual rents in the area are marginally higher, reflecting a balance between affordable and market rates.
The median home value in ZIP 46217 stands at $257,762, which is indicative of a middle-tier neighborhood within the metro area. Home values in this range suggest a mix of affordability and quality, suitable for both first-time buyers and long-term residents looking for stable investments.
A key statistic is the 18.5% renter share, which is a significant portion of the population but not unusually high compared to other urban areas. However, when combined with the relatively lower FMR and median home value, it suggests that ZIP 46217 could be an attractive location for Section 8 tenants. This makes it a potential value pocket for landlords who are willing to participate in the program, as they can attract a steady stream of renters without the need for high rental prices.
To further contextualize, consider the following:
The combination of a moderate renter share and a below-average FMR relative to market rent points to a neighborhood where there is demand for affordable housing, making it a strategic choice for landlords interested in Section 8 tenants. While not necessarily signaling a premium sub-market, 46217's characteristics indicate a solid value proposition for those seeking to invest in properties that cater to a mix of income levels and housing needs.
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.