Location: Indianapolis-Carmel, IN | Metro: Indianapolis-Carmel, IN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,100 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,420 |
| 3 Bedrooms | $1,840 |
| 4 Bedrooms | $2,240 |
| 5 Bedrooms | $2,598 |
| 6 Bedrooms | $2,910 |
| 7 Bedrooms | $3,143 |
| 8 Bedrooms | $3,300 |
U.S. Census Bureau data (2024)
41.0% of residents in ZIP 46219, Indianapolis, IN, are renters, indicating a strong demand for rental properties. The Fair Market Rent (FMR) for the area is set at $1180 for zip FY 2024, which is higher than the Zillow Observed Rent Index (ZORI) of $1,070, suggesting that landlords can potentially charge above the average market rate. However, the median home value stands at $185,395, showing that property values are relatively affordable for investors looking to enter the market. With a median income of $60,803, tenants have the financial capability to afford rents close to the FMR, making it a viable option for landlords seeking stable cash flows. The Days on Market (DOM) average is 24 days, indicating that properties are selling quickly, which could be a positive sign for both buying and selling investment properties. Additionally, only 0.3% of listings experience price cuts, reflecting a robust and competitive real estate market where pricing accurately is crucial. Given these factors, the Section 8 program, with its fixed FMR, provides a predictable income stream for landlords willing to participate. However, the gap between the FMR and ZORI suggests that landlords might find better returns outside of the Section 8 program. For those considering Section 8, the high demand for rentals and quick sales indicate a favorable environment, but the low price-cut share and quick DOM suggest that competition among landlords is fierce. In conclusion, while Section 8 offers stability, landlords in ZIP 46219 should carefully weigh the benefits against the potential for higher market rents.
Data Sources: FMR data from HUD (2027). 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.