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 | $1,410 |
| 1 Bedroom | $1,590 |
| 2 Bedrooms | $1,830 |
| 3 Bedrooms | $2,370 |
| 4 Bedrooms | $2,890 |
| 5 Bedrooms | $3,352 |
| 6 Bedrooms | $3,754 |
| 7 Bedrooms | $4,054 |
| 8 Bedrooms | $4,257 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,830 | $191,986 | 0.95% | C |
| 3BR | $2,370 | $256,969 | 0.92% | C |
| 4BR | $2,890 | $332,614 | 0.87% | C |
| 5BR | $3,352 | $503,688 | 0.67% | D |
U.S. Census Bureau data (2024)
The ZIP code 46228 in Indianapolis, IN, presents an interesting balance between yield and stability for real estate investors. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,530, which is slightly below the market rent of $1,598 but significantly higher than the average home value of $270,199. This suggests a moderate yield potential.
To classify the market, we must consider both the rental income potential and the stability factors. With a median home value of $270,199, the rental income of $1,598 represents a strong yield. Specifically, the FMR indicates that landlords can expect a monthly rent that is approximately 57 cents for every dollar of home value, calculated as $1,598 divided by $270,199. This ratio is indicative of a high-yield environment, particularly when compared to other markets where the ratio might be lower.
On the stability front, the ZIP code shows a mixed profile. The percentage of renters is relatively low at 15.6%, which could indicate a less stable tenant base and potentially higher vacancy rates. However, the days on market (DOM) for rentals is a positive metric at just 39 days, suggesting quick turnover and minimal time spent finding new tenants. Additionally, the median household income of $91,156 provides some assurance regarding the ability of residents to afford rent, thereby contributing to a degree of financial stability.
Given these factors, ZIP 46228 is best classified as a steady-cashflow zone rather than a high-yield/low-stability flip-style market. While the yield is good, the relatively low percentage of renters and median income suggest that the market is not prone to high-risk, high-reward flipping strategies. Instead, it supports a model where landlords can achieve consistent cash flow with reasonable risk management.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.