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 | $1,210 |
| 1 Bedroom | $1,370 |
| 2 Bedrooms | $1,570 |
| 3 Bedrooms | $2,040 |
| 4 Bedrooms | $2,480 |
| 5 Bedrooms | $2,877 |
| 6 Bedrooms | $3,222 |
| 7 Bedrooms | $3,480 |
| 8 Bedrooms | $3,654 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,370 | $155,802 | 0.88% | C |
| 2BR | $1,570 | $171,575 | 0.92% | C |
| 3BR | $2,040 | $251,652 | 0.81% | C |
| 4BR | $2,480 | $305,376 | 0.81% | C |
| 5BR | $2,877 | $351,590 | 0.82% | C |
U.S. Census Bureau data (2024)
The ZIP code 46268 in Indianapolis, IN, presents a dynamic real estate market characterized by a delicate balance between supply and demand. The Fair Market Rent (FMR) for the area, set at $1410 for fiscal year 2024, closely aligns with the market rent indicator known as ZORI, which stands at $1,413. This suggests that rental prices are reflective of the fair market assessment, indicating a stable yet competitive environment.
A key metric in understanding market dynamics is the price-cut share, which for ZIP 46268 is 0.3%. This low percentage implies that sellers are not frequently lowering their prices to attract buyers, suggesting that demand remains robust relative to supply. While the days on market (DOM) is listed as N/A, the low price-cut share indicates that homes are likely selling without extended periods on the market, further supporting the idea of a balanced or slightly demand-driven market.
The median home value in ZIP 46268 is $251,768, a figure that reflects the overall affordability of homeownership in the area. However, with a renter share of 54.3%, it becomes evident that a significant portion of the population prefers or requires rental accommodation. This high percentage of renters can exert long-term pressure on the housing market, as it suggests a consistent demand for rental properties. Landlords and small-portfolio investors should recognize this trend as an indicator of sustained interest in rental properties, potentially leading to steady occupancy rates and rental income.
The snapshot of the ZIP 46268 market reveals a scenario where demand, particularly for rentals, is strong enough to keep prices stable and sales brisk. For investors, this means that while homeownership is accessible, the rental market offers a reliable avenue for investment given the substantial renter population. The interplay between these factors positions ZIP 46268 as a market in motion, with a clear tilt towards rental demand driving the local real estate landscape.
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.