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 | $1,140 |
| 1 Bedroom | $1,280 |
| 2 Bedrooms | $1,470 |
| 3 Bedrooms | $1,910 |
| 4 Bedrooms | $2,320 |
| 5 Bedrooms | $2,691 |
| 6 Bedrooms | $3,014 |
| 7 Bedrooms | $3,255 |
| 8 Bedrooms | $3,418 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,470 | $190,644 | 0.77% | D |
| 3BR | $1,910 | $199,202 | 0.96% | C |
| 4BR | $2,320 | $234,568 | 0.99% | C |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 landlord in ZIP 46224, Speedway, IN, include tenant turnover and vacancy exposure. The market rent in Speedway is $1,192, while the Fair Market Rent (FMR) for FY 2024 is $1,210. This slight difference can lead to higher tenant turnover if landlords do not adjust their rents to match the FMR, causing financial instability. Additionally, the vacancy risk is notable due to a relatively short 9-day Days on Market (DOM), which indicates that properties might be vacant for longer periods than expected, leading to lost rental income.
Deferred maintenance is another concern, given the typical home value of $201,587 and the median income of $55,986. Landlords should anticipate the need for regular upkeep and repairs, as tenants receiving Section 8 assistance might not have the resources to contribute to these costs. This financial burden could strain the budget of landlords who are not prepared for such expenses.
Despite these risks, the high renter share of 63.7% in Speedway suggests strong demand for rental properties, including those that accept Section 8 vouchers. A large percentage of renters typically translates into a higher number of individuals seeking housing through government assistance programs, thus providing a steady stream of potential tenants. This demand helps mitigate some of the risks associated with tenant turnover and vacancy.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.