FY2027 Small Area FMR · Indianapolis, IN

ZIP 46216 Fair Market Rent & Payment Standards

HUD's FY2027 Small Area Fair Market Rent for a two-bedroom home in ZIP code 46216 (Indianapolis, IN) is $1,700 a month, up 3.0% from FY2026. That is 11% above the Indianapolis-Carmel, IN area-wide FMR of $1,536.

2-bedroom SAFMR$1,700per month ▲ 3.0%

Area-wide 2 BR FMR$1,536Indianapolis-Carmel, IN

Rank in the area35thof 136 ZIP codes

Payment standard range, 2 bedrooms

90% of SAFMR$1,530

2 BR Small Area FMR$1,700

110% of SAFMR$1,870

Housing agencies may set voucher payment standards anywhere from 90% to 110% of the FMR without asking HUD.

Studio$1,310▲ 4.8%

1 BR$1,480▲ 4.2%

2 BR$1,700▲ 3.0%

3 BR$2,200▲ 2.8%

4 BR$2,680▲ 2.3%

FY2027 FY2026

Where 46216 sits in the Indianapolis-Carmel, IN area

Of the 136 ZIP codes HUD lists for the area, 46216 has the 35th highest two-bedroom Small Area FMR. Indianapolis-Carmel, IN is one of the 65 metro areas where HUD requires Small Area FMRs for the Housing Choice Voucher program (designated 2023), so local housing agencies must set payment standards from this ZIP code's figure, normally between $1,530 and $1,870 for two bedrooms.

All unit sizes

Monthly gross rent including utilities
Unit	FY2027 SAFMR	Payment standard range	Area-wide FMR	FY2026 SAFMR
Studio	$1,310	$1,179 – $1,441	$1,187	$1,250
1 bedroom	$1,480	$1,332 – $1,628	$1,336	$1,420
2 bedrooms	$1,700	$1,530 – $1,870	$1,536	$1,650
3 bedrooms	$2,200	$1,980 – $2,420	$1,991	$2,140
4 bedrooms	$2,680	$2,412 – $2,948	$2,425	$2,620

A household renting a two-bedroom home at the Small Area FMR of $1,700 needs about $68,000 a year to keep housing costs at 30% of income. The area median family income is $110,300 and the 80% low-income limit for four people is $88,250. ZIP code 46216 lies mainly in Marion County. See the Indianapolis-Carmel, IN metro page for the full income limits table and the household check.

Nearby ZIP codes

ZIP	Place	Distance	2 BR SAFMR
46235	Indianapolis	2.8 mi	$1,310
46226	Indianapolis	2.9 mi	$1,440
46256	Indianapolis	2.9 mi	$1,500
46236	Indianapolis	3.1 mi	$2,300
46250	Indianapolis	3.4 mi	$1,690
46220	Indianapolis	5.2 mi	$1,790

Questions

What is the Fair Market Rent for ZIP code 46216?

HUD's FY2027 Small Area Fair Market Rents for 46216 are $1,310 (studio), $1,480 (1 BR), $1,700 (2 BR), $2,200 (3 BR) and $2,680 (4 BR) a month.

What is the Section 8 payment standard in 46216?

Housing agencies set payment standards between 90% and 110% of the applicable FMR without HUD approval. For a two-bedroom unit in 46216 that range is $1,530 to $1,870 if the agency uses Small Area FMRs. Ask your housing agency for its actual payment standard.

Which income limits apply in 46216?

The FY2026 income limits of the Indianapolis-Carmel, IN area apply: median family income $110,300, low-income (80%) limit $88,250 for a family of four.