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 | $1,030 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,330 |
| 3 Bedrooms | $1,720 |
| 4 Bedrooms | $2,100 |
| 5 Bedrooms | $2,436 |
| 6 Bedrooms | $2,728 |
| 7 Bedrooms | $2,946 |
| 8 Bedrooms | $3,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,160 | $82,773 | 1.4% | A |
| 2BR | $1,330 | $102,736 | 1.29% | A |
| 3BR | $1,720 | $122,782 | 1.4% | A |
| 4BR | $2,100 | $138,374 | 1.52% | A+ |
U.S. Census Bureau data (2024)
The ZIP code 46218 in Indianapolis, IN, is characterized by a significant rental population, with 47.2% of residents being renters. This indicates that the area has a strong potential for Section 8 tenants due to the high proportion of individuals who rely on renting their homes. The median household income in this ZIP is $38,063, which is crucial when assessing the affordability of housing for low-income families.
The typical market rent in ZIP 46218 is $1,108, representing approximately 29.1% of the median household income. This calculation is derived from dividing the market rent by the median income and multiplying by 100. With the Fair Market Rent (FMR) set at $1,160 for FY 2024, it's evident that the actual market rents are slightly below the FMR, making properties in this area potentially attractive for both landlords and tenants participating in the Section 8 program.
The income level suggests that tenants in ZIP 46218 will be primarily low-income families who benefit significantly from housing assistance programs such as Section 8. Landlords can expect to see a high demand for rental units from these tenants, as the cost of living in the area is relatively manageable compared to other parts of Indianapolis. The fact that the median income is lower than the FMR also supports the idea that there is a substantial need for rental subsidies among the population.
A landlord in ZIP 46218 should anticipate a tenant pool that heavily relies on Section 8 vouchers to afford housing. These tenants will likely include families with children, single parents, and possibly elderly individuals or those with disabilities who qualify for federal assistance. Given the economic conditions, it's important for landlords to understand the dynamics of the Section 8 program, including the role of Housing Authorities and the process of setting and adjusting rent levels based on the tenant's income.
In conclusion, ZIP 46218 presents itself as an area with a robust demand for Section 8 vouchers, driven by a large rental population and a median income that necessitates financial assistance for housing. Landlords should prepare for a tenant base that is predominantly low-income and reliant on government subsidies to cover rent payments.
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.