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 | $1,040 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,750 |
| 4 Bedrooms | $2,130 |
| 5 Bedrooms | $2,471 |
| 6 Bedrooms | $2,768 |
| 7 Bedrooms | $2,989 |
| 8 Bedrooms | $3,138 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,350 | $166,364 | 0.81% | C |
| 3BR | $1,750 | $211,875 | 0.83% | C |
| 4BR | $2,130 | $247,310 | 0.86% | C |
| 5BR | $2,471 | $312,600 | 0.79% | D |
U.S. Census Bureau data (2024)
ZIP code 46229, located in Indianapolis, IN, is situated within the broader Indianapolis-Carmel, IN HUD Metro FMR Area. Its Fair Market Rent (FMR) for FY 2024 stands at $1,260, which is notably lower than the market rent of $1,595. This suggests that properties in this ZIP code might be more attractive to tenants seeking government-subsidized housing options under the Section 8 program.
The median home value in ZIP 46229 is $217,119, indicating a relatively affordable area compared to other parts of the metro. With a renter share of 38.4%, it's clear that nearly four out of ten residents are renters, which is a significant portion but not unusually high for the region.
To determine if 46229 is a value pocket, a mid-tier neighborhood, or a premium sub-market within the Indianapolis-Carmel, IN HUD Metro FMR Area, we can compare its metrics to typical ZIP codes in the same area. Generally, a ZIP code with a below-average FMR and home value, coupled with a higher-than-average renter share, tends to be a value pocket for Section 8 investors. This is because such areas offer a balance between affordability and demand for rental properties.
In ZIP 46229, the FMR is lower than the market rent, and the home value is also below what might be considered average for the metro area. The renter share, while not exceptionally high, is still above the national average, signaling potential demand for subsidized rentals. These factors suggest that 46229 could be a value pocket for Section 8 investments within the Indianapolis-Carmel, IN HUD Metro FMR Area.
However, without specific data on the typical FMR, market rent, home values, and renter shares across all ZIP codes in the Indianapolis-Carmel, IN HUD Metro FMR Area, we cannot definitively state how it compares to the overall average. What we can infer is that the combination of a lower FMR and home value, alongside a decent renter share, makes 46229 an appealing location for landlords and small-portfolio investors looking to participate in the Section 8 program.
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.