FY2027 Small Area FMR · Indianapolis, IN

ZIP 46235 Fair Market Rent & Payment Standards

HUD's FY2027 Small Area Fair Market Rent for a two-bedroom home in ZIP code 46235 (Indianapolis, IN) is $1,310 a month, up 4.8% from FY2026. That is 15% below the Indianapolis-Carmel, IN area-wide FMR of $1,536.

2-bedroom SAFMR$1,310per month ▲ 4.8%

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

Rank in the area93rdof 136 ZIP codes

Payment standard range, 2 bedrooms

90% of SAFMR$1,179

2 BR Small Area FMR$1,310

110% of SAFMR$1,441

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

Studio$1,010▲ 6.3%

1 BR$1,140▲ 5.6%

2 BR$1,310▲ 4.8%

3 BR$1,700▲ 4.9%

4 BR$2,070▲ 4.5%

FY2027 FY2026

Where 46235 sits in the Indianapolis-Carmel, IN area

Of the 136 ZIP codes HUD lists for the area, 46235 has the 93rd 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 $1,179 and $1,441 for two bedrooms.

All unit sizes

Monthly gross rent including utilities
Unit	FY2027 SAFMR	Payment standard range	Area-wide FMR	FY2026 SAFMR
Studio	$1,010	$909 – $1,111	$1,187	$950
1 bedroom	$1,140	$1,026 – $1,254	$1,336	$1,080
2 bedrooms	$1,310	$1,179 – $1,441	$1,536	$1,250
3 bedrooms	$1,700	$1,530 – $1,870	$1,991	$1,620
4 bedrooms	$2,070	$1,863 – $2,277	$2,425	$1,980

A household renting a two-bedroom home at the Small Area FMR of $1,310 needs about $52,400 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 46235 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
46216	Indianapolis	2.8 mi	$1,700
46229	Indianapolis	3.4 mi	$1,350
46236	Indianapolis	4.1 mi	$2,300
46226	Indianapolis	4.1 mi	$1,440
46055	Mccordsville	5.2 mi	$2,090
46219	Indianapolis	5.2 mi	$1,420

Questions

What is the Fair Market Rent for ZIP code 46235?

HUD's FY2027 Small Area Fair Market Rents for 46235 are $1,010 (studio), $1,140 (1 BR), $1,310 (2 BR), $1,700 (3 BR) and $2,070 (4 BR) a month.

What is the Section 8 payment standard in 46235?

Housing agencies set payment standards between 90% and 110% of the applicable FMR without HUD approval. For a two-bedroom unit in 46235 that range is $1,179 to $1,441 if the agency uses Small Area FMRs. Ask your housing agency for its actual payment standard.

Which income limits apply in 46235?

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.