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 |
|---|---|---|---|---|
| 2BR | $1,420 | $151,221 | 0.94% | C |
| 3BR | $1,840 | $188,518 | 0.98% | C |
| 4BR | $2,240 | $231,092 | 0.97% | C |
U.S. Census Bureau data (2024)
The ZIP code 46225 in Indianapolis, IN, stands out within Marion County due to its unique mix of economic indicators. With a population of 6,037 residents, it has a significant rental market at 44.0%, suggesting a diverse tenant base. The median income of $55,190 is reflective of a middle-class community, while the median home value of $174,884 indicates a relatively stable housing market.
For landlords and small-portfolio investors, the key economic factor to consider is the disparity between the Fair Market Rent (FMR) and the market rent (ZORI). The FMR for ZIP 46225 in fiscal year 2024 is set at $1,220, which is notably lower than the ZORI of $1,535. This means that landlords participating in the Section 8 program can expect to receive less than the market rate for their properties. However, the program provides a guaranteed and timely source of income through government subsidies, making it an attractive option despite the lower rents.
Given the data signature of ZIP 46225, it reads as stable rather than transitional. The median home values suggest a mature neighborhood with established housing stock, and the median income level supports a consistent demand for both rental and owned homes. While the rental market is sizeable, indicating some level of mobility, the overall economic profile suggests a steady environment for real estate investment.
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.