Location: Indianapolis-Carmel, IN | Metro: Bloomington, 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 | $990 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,970 |
| 5 Bedrooms | $2,285 |
| 6 Bedrooms | $2,559 |
| 7 Bedrooms | $2,764 |
| 8 Bedrooms | $2,902 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,260 | $328,333 | 0.38% | F |
| 3BR | $1,620 | $414,404 | 0.39% | F |
U.S. Census Bureau data (2024)
The Unionville, IN area, part of the Indianapolis-Carmel HUD Metro FMR Area, presents a mixed opportunity for Section 8 investors. The HUD Fair Market Rent (FMR) for this ZIP code (47468) is set at $1,120 for fiscal year 2024. This is notably lower than the market rent of $1,652 as reported by the Census Bureau's American Community Survey (ACS).
To determine the viability of cashflow with voucher tenants, we compare the HUD FMR against the market rent. In this case, the difference between the market rent and the HUD FMR is significant, indicating that voucher tenants would generally not cover the full market rent. Specifically, voucher tenants would only cashflow marginally, if at all, without landlords seeking out premium units that command higher rents.
The median home value in Unionville is $366,055. To understand the rent-to-price ratio, we divide the median market rent by the median home value. This gives us a ratio of approximately 0.45%, suggesting that rental income alone may not fully justify the investment based on property value. However, this does not account for potential appreciation or stability in the housing market.
Note that the data does not provide a median days on market (DOM) or a percentage of homes that experienced price cuts. These metrics could offer insights into the local real estate market dynamics and help investors gauge the balance between renting and buying properties.
The strongest investor angle in Unionville appears to be stability, given the relatively high median home value and the consistent demand for rental properties, even if cashflow is limited compared to market rent levels.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.