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 | $1,290 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $1,920 |
| 4 Bedrooms | $2,340 |
| 5 Bedrooms | $2,714 |
| 6 Bedrooms | $3,040 |
| 7 Bedrooms | $3,283 |
| 8 Bedrooms | $3,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,290 | $93,349 | 1.38% | A |
| 2BR | $1,480 | $126,427 | 1.17% | B |
| 3BR | $1,920 | $180,684 | 1.06% | B |
| 4BR | $2,340 | $205,894 | 1.14% | B |
U.S. Census Bureau data (2024)
ZIP code 46241 is located in Indianapolis, IN, and represents a typical urban neighborhood with a population of 32,565 residents. It has a significant rental market, with 46.0% of its inhabitants being renters. The median household income in this area stands at $53,653, which is relatively modest compared to some other parts of Indianapolis. The median home value in ZIP 46241 is $156,794, indicating that it is a moderately priced residential area.
Moving into the specifics of rent economics, the Fair Market Rent (FMR) for ZIP 46241 for fiscal year 2024 is set at $1,280. This figure is slightly higher than the market rent, which is currently estimated at $1,255 based on ZORI data. The FMR is the benchmark used by the U.S. Department of Housing and Urban Development (HUD) to determine the maximum payment a landlord can receive through the Section 8 program, ensuring that rents are affordable for low-income families while providing fair compensation to landlords.
The difference between the FMR and the market rent suggests that landlords participating in the Section 8 program in ZIP 46241 can expect to be paid a rate close to the market average. This makes the area suitable for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the steady stream of government-subsidized rents provides a reliable source of income without the need for active property management. Meanwhile, hands-on buyers can leverage the slightly higher FMR to potentially improve properties and still maintain competitive rental rates.
In summary, ZIP 46241 offers a balanced opportunity for Section 8 investors. With a substantial portion of the population renting and a median income that reflects moderate affordability, the neighborhood supports both passive investment strategies and those seeking to add value to their properties. The FMR of $1,280 aligns closely with the market rent of $1,255, making it an attractive option for landlords looking to participate in the Section 8 program.
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.