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 | $1,100 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,230 | $81,694 | 1.51% | A+ |
| 2BR | $1,420 | $105,145 | 1.35% | A |
| 3BR | $1,840 | $141,879 | 1.3% | A |
| 4BR | $2,240 | $151,552 | 1.48% | A |
| 5BR | $2,598 | $176,203 | 1.47% | A |
U.S. Census Bureau data (2024)
The rent math in ZIP 46222, located in the Indianapolis-Carmel, IN HUD Metro FMR area, does not align perfectly. The Fair Market Rent (FMR) for the zip code in fiscal year 2024 is set at $1240, while the actual market rent, as indicated by ZORI, is $1,151. This discrepancy suggests that landlords can expect to charge slightly above the market rate but should be prepared for some resistance from potential tenants.
Acquisition in this area is relatively affordable. The median home value stands at $130,416, which is a reasonable investment for landlords and small-portfolio investors. Additionally, the days on market (DOM) average is 38 days, indicating that homes are sold fairly quickly. The low 0.3% price-cut share further supports the idea that pricing adjustments are rarely necessary, making it a stable market for acquisitions.
Tenant demand is strong in ZIP 46222. With a population of 38,887, and 51.7% of residents being renters, there is a significant pool of potential tenants. This high percentage of renters suggests a robust demand for rental properties, providing a solid foundation for rental investments.
In summary, while the rent math shows a modest gap between FMR and market rates, the affordability of acquisitions and the strong tenant demand make ZIP 46222 a viable investment opportunity. Landlords should focus on properties priced around the median value and be ready to leverage the higher FMR when setting rents to maximize returns. The quick turnover times and low need for price adjustments also support a favorable environment for property owners.
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.