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 | $1,160 |
| 1 Bedroom | $1,300 |
| 2 Bedrooms | $1,500 |
| 3 Bedrooms | $1,940 |
| 4 Bedrooms | $2,370 |
| 5 Bedrooms | $2,749 |
| 6 Bedrooms | $3,079 |
| 7 Bedrooms | $3,325 |
| 8 Bedrooms | $3,491 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,500 | $219,501 | 0.68% | D |
| 3BR | $1,940 | $314,061 | 0.62% | D |
| 4BR | $2,370 | $428,519 | 0.55% | F |
| 5BR | $2,749 | $670,640 | 0.41% | F |
U.S. Census Bureau data (2024)
27.0% of residents in ZIP 46256 rely on rental housing, indicating a steady demand for properties in Indianapolis, IN. The $1,226 market rent (ZORI) suggests that landlords can expect consistent returns, especially when compared to the $1300 Fair Market Rent (FMR) set for the area in fiscal year 2024. This implies that rental prices are currently below fair market rates, offering potential upside for investors.
The median home value in ZIP 46256 stands at $343,382, which is a significant figure for small-portfolio investors looking to enter the market. However, the relatively low median income of $93,847 indicates that affordability could be a challenge for some tenants, making it crucial for landlords to offer competitive rental terms.
With a 19-day Days on Market (DOM), properties in this area move quickly once they are listed. This short DOM period reflects a robust local real estate market where timely action can lead to successful acquisitions. Additionally, the 0.2% price-cut share shows that sellers are not often having to reduce their asking prices, suggesting strong property values and stability in the market.
To conclude, the data points to a favorable environment for landlords and small-portfolio investors in ZIP 46256. The gap between market rent and FMR provides an opportunity for rental growth, while the quick sale times and stable home values indicate a healthy market. Given these factors, the Section 8 program, with its fixed rent structure at $1300, offers a reliable source of income for those willing to participate.
Verdict: ZIP 46256 presents a solid opportunity for Section 8 participation, with a balanced mix of demand and value.
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.