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 | $1,230 |
| 1 Bedroom | $1,380 |
| 2 Bedrooms | $1,590 |
| 3 Bedrooms | $2,060 |
| 4 Bedrooms | $2,510 |
| 5 Bedrooms | $2,912 |
| 6 Bedrooms | $3,261 |
| 7 Bedrooms | $3,522 |
| 8 Bedrooms | $3,698 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,590 | $253,363 | 0.63% | D |
| 3BR | $2,060 | $323,119 | 0.64% | D |
| 4BR | $2,510 | $412,092 | 0.61% | D |
| 5BR | $2,912 | $448,274 | 0.65% | D |
U.S. Census Bureau data (2024)
ZIP code 46259, located in Indianapolis, IN, falls within the broader Indianapolis-Carmel, IN HUD Metro FMR Area. Its Fair Market Rent (FMR) for fiscal year 2024 is set at $1700. To understand how this compares to the rest of the metro area, let's examine other key metrics.
The market rent for ZIP 46259 is $2,153, which is above the FMR but indicates that the rental market is slightly higher than the government benchmark. This suggests that landlords can charge more than the FMR for market-rate units, potentially increasing their profit margins.
The median home value in ZIP 46259 stands at $371,104. This figure is indicative of a middle-range housing market within the Indianapolis-Carmel metro area, where home values can vary widely. It places 46259 in a moderate price range, neither among the most expensive nor the least costly neighborhoods.
The renter share in ZIP 46259 is 4.5%. This percentage represents the proportion of households that rent rather than own their homes. A higher renter share can be beneficial for landlords as it signifies a larger tenant pool. However, the 4.5% figure is relatively low, suggesting that homeownership is still prevalent in this area.
To determine if ZIP 46259 is a value pocket, mid-tier neighborhood, or premium sub-market, we must consider the interplay between these figures. The FMR being lower than the market rent and the median home value being moderate suggest that 46259 could be seen as a mid-tier neighborhood. Landlords here might find a balance between the cost of Section 8 subsidies and the ability to attract tenants willing to pay market rates.
A notable divergence is the combination of a below-metro average home value with a slightly elevated market rent. This pattern could signal a potential sweet spot for Section 8 landlords, as it indicates a market where affordable housing is available, yet rents are competitive enough to provide decent returns on investment. However, the relatively low renter share means that while there may be opportunities, they might be limited compared to areas with higher tenant demand.
In summary, ZIP 46259 appears to offer a balanced opportunity for landlords and small-portfolio investors. It is not an obvious value pocket due to the moderate home values and low renter share, nor is it a premium sub-market given the lower FMR and median home value. Instead, it presents a middle-ground scenario where careful consideration of property management strategies can lead to success.
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.