Section 8 Fair Market Rent (FMR) for ZIP 46239 - 2027
Location: Indianapolis-Carmel, IN | Metro: Indianapolis-Carmel, IN HUD Metro FMR Area
Investment Score for ZIP 46239
D
Monthly Rent (2BR)
$1,790
Median Price (2BR)
$253,793
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $1,380 |
| 1 Bedroom | $1,560 |
| 2 Bedrooms | $1,790 |
| 3 Bedrooms | $2,320 |
| 4 Bedrooms | $2,830 |
| 5 Bedrooms | $3,283 |
| 6 Bedrooms | $3,677 |
| 7 Bedrooms | $3,971 |
| 8 Bedrooms | $4,170 |
Investment Analysis by Bedroom Size
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms |
Monthly FMR |
Median Price |
1% Rule |
Grade |
| 2BR |
$1,790 |
$253,793 |
0.71% |
D |
| 3BR |
$2,320 |
$265,225 |
0.87% |
C |
| 4BR |
$2,830 |
$324,324 |
0.87% |
C |
| 5BR |
$3,283 |
$398,452 |
0.82% |
C |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$100,331
To determine if you should buy in ZIP code 46239 (Indianapolis, IN) for Section 8 investment, follow this decision tree:
- Does FMR $1520 (zip FY 2024) clear debt service on a $292,988 property?
- Yes: If your property's monthly debt service is less than $1520, then the Fair Market Rent (FMR) covers your expenses. This makes ZIP 46239 a viable option for Section 8.
- No: If your property's monthly debt service exceeds $1520, then the FMR does not cover your costs. Investing in ZIP 46239 would result in a financial loss.
- Is market rent $1,946 (ZORI) above, at, or below FMR?
- Above: If the Zillow Observed Rental Index (ZORI) of $1,946 is higher than the FMR of $1520, market conditions favor higher rents. However, this also indicates that Section 8 tenants may struggle to find housing, reducing demand.
- At or Below: If ZORI is at or below the FMR, then market rents align closely with government subsidies. This suggests stable demand for Section 8 properties.
- Are 17.6% renters + 61-day DOM enough demand?
- It Depends: With 17.6% of residents being renters and an average Days on Market (DOM) of 61 days, demand is moderate. If the ZORI is below or equal to the FMR, the demand is sufficient. However, if the ZORI is significantly above the FMR, the demand might be insufficient due to high market rents deterring potential Section 8 tenants.
In summary, investing in ZIP 46239 for Section 8 properties is viable only if the FMR covers the debt service. The market rent being above the FMR signals caution as it may reduce the pool of eligible tenants. Moderate rental demand, as indicated by the 17.6% renters and 61-day DOM, can support a Section 8 portfolio, but it depends on how the ZORI compares to the FMR.
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.