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 | $1,690 |
| 1 Bedroom | $1,900 |
| 2 Bedrooms | $2,180 |
| 3 Bedrooms | $2,830 |
| 4 Bedrooms | $3,440 |
| 5 Bedrooms | $3,990 |
| 6 Bedrooms | $4,469 |
| 7 Bedrooms | $4,827 |
| 8 Bedrooms | $5,068 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,180 | $280,081 | 0.78% | D |
| 3BR | $2,830 | $337,778 | 0.84% | C |
| 4BR | $3,440 | $433,597 | 0.79% | D |
U.S. Census Bureau data (2024)
Carmel, IN, located in ZIP code 46280, represents a strategic fit within a Section 8 portfolio. Given the specific financial metrics available, this area stands out as a cash-flow anchor. The Fair Market Rent (FMR) for ZIP 46280 in fiscal year 2024 is set at $1820, which is notably higher than the current market rent of $1723. This $97 spread indicates that landlords participating in the Section 8 program can expect a consistent, reliable income stream that slightly exceeds the prevailing market rates.
The median home value in ZIP 46280 is $340,130, positioning it as an upper-middle-class suburb within the Indianapolis-Carmel HUD Metro FMR Area. Despite the higher property values, the significant difference between FMR and market rents ensures that landlords can maintain positive cash flow even when accounting for maintenance costs, vacancies, and other operational expenses typical in rental management.
While there's no data on price-cut shares or days on market (DOM), which would typically inform an appreciation play strategy, the high median income of $91,152 suggests a stable economic base. This stability supports the viability of the cash-flow anchor strategy, as it implies a steady demand for housing and a lower risk of default among tenants.
The 38.2% renter share indicates that while a majority of residents own their homes, there is still a substantial portion of the population renting. This mix offers landlords a balanced opportunity, leveraging the benefits of both homeownership and rental markets. However, it's the favorable spread between FMR and market rents that makes ZIP 46280 a strong candidate for inclusion as a cash-flow anchor in a Section 8 portfolio.
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.