Indianapolis, IN Rental Market Data (2026)

Indianapolis, IN

By TrueCap · built by a Philadelphia rental investor

HUD Fair Market Rent (FY2026) for the Indianapolis-Carmel, IN HUD Metro FMR Area, the HUD area that includes Marion County, IN: $1,473 a month for a 2-bedroom unit and $1,907 for a 3-bedroom unit. Fair Market Rent is HUD's estimate of the 40th-percentile gross rent for standard-quality rental units in an area, used to determine payment standard amounts for the Housing Choice Voucher program: a percentile, not an average of current asking rents (HUD). HUD's page for the Indianapolis-Carmel, IN HUD Metro FMR Area says all Housing Choice Voucher programs operated there will use ZIP-level Small Area FMRs instead of this area figure (HUD FY2026). At a stated $265,000 price with the 3-bedroom FMR as a placeholder rent, TrueCap's sample underwrite below comes to −$324/mo cash flow, a 5.1% cap rate, and a 0.83 DSCR. A specific Indianapolis property runs on its own price, rent, tax bill, and insurance.

Indianapolis HUD Fair Market Rent (FY2026)

HUD Fair Market Rent (FY2026) for the Indianapolis-Carmel, IN HUD Metro FMR Area, the HUD area that includes Marion County, IN. It is an area benchmark, not what a specific unit rents for: compare it with current leases for the address. HUD's FY2026 page for this area shows every bedroom size.

HUD Fair Market Rent (FY2026) by bedroom count, Indianapolis-Carmel, IN HUD Metro FMR Area
Bedrooms	FY2025 / month	FY2026 / month
2 bedrooms	$1,283	$1,473
3 bedrooms	$1,669	$1,907

What the HUD FMR pencils to

Sample underwrite at a stated $265,000 price with the HUD 3-bedroom FMR as a placeholder rent — not a listing. TrueCap ran its sample deal with $1,907/mo of rent and every other assumption unchanged.

Monthly cash flow: −$324/mo
Cap rate: 5.1%
DSCR: 0.83

Assumptions: $265,000 price, $1,907/mo rent (HUD FMR, 3 bedrooms), 20% down, 6.6% rate, 30-year loan, 3% closing costs, 1.49% property tax, 0.5% insurance, 5% vacancy, 8% management, 5% maintenance, 5% CapEx reserve. Change any of them in the analyzer and the numbers move with you.

Indianapolis rental data: common questions

What is HUD's Fair Market Rent for Indianapolis, IN in FY2026?

HUD's FY2026 Fair Market Rent for the Indianapolis-Carmel, IN HUD Metro FMR Area, the HUD area that includes Marion County, IN, is $1,473 a month for a 2-bedroom unit and $1,907 for a 3-bedroom unit.

Source: HUD FY2026 Fair Market Rent documentation: Indianapolis-Carmel, IN HUD Metro FMR Area, retrieved September 28, 2026

How did Indianapolis's HUD Fair Market Rent change from FY2025 to FY2026?

For the Indianapolis-Carmel, IN HUD Metro FMR Area, the 2-bedroom figure went from $1,283 in FY2025 to $1,473 in FY2026 (+$190, +14.8%), and the 3-bedroom figure went from $1,669 in FY2025 to $1,907 in FY2026 (+$238, +14.3%).

Source: HUD FY2026 Fair Market Rent documentation: Indianapolis-Carmel, IN HUD Metro FMR Area, retrieved September 28, 2026

What do 12 months of HUD Fair Market Rent come to in Indianapolis?

At HUD's FY2026 Fair Market Rent for the Indianapolis-Carmel, IN HUD Metro FMR Area, 12 months come to $17,676 for a 2-bedroom unit and $22,884 for a 3-bedroom unit.

Source: HUD FY2026 Fair Market Rent documentation: Indianapolis-Carmel, IN HUD Metro FMR Area, retrieved September 28, 2026

Sources & methodology

Data as of HUD FY2026 (retrieved September 27, 2026).

HUD figures come from HUD's published tables for the area. The sample underwrite runs TrueCap's sample deal through the analyzer's own math.

HUD FY2026 Fair Market Rent documentation: Indianapolis-Carmel, IN HUD Metro FMR Area, retrieved September 28, 2026
HUD FY2026 Small Area FMR status for vouchers: Indianapolis-Carmel, IN HUD Metro FMR Area, retrieved September 28, 2026
HUD Fair Market Rents: definition and uses (huduser.gov), retrieved September 27, 2026

Figures with a source can be checked against the pages listed here. See our full methodology.

Three things to verify locally

Property tax bill.: Pull the parcel's current bill from the county assessor or treasurer, and check whether a sale changes the assessment. The sample above uses 1.49% of price; enter the Indianapolis bill instead.
Rental licensing and permits.: Check whether Indianapolis requires a rental license, registration, inspection, or certificate of occupancy for the address, and budget any fees before you close.
Insurance quotes.: Get a written landlord-policy quote for the specific property, with wind, hail, or flood coverage where the property needs it, and enter that premium instead of a default.

For Indiana data, see the Indiana guide.

The terms behind the numbers

Cap Rate DSCR (Debt Service Coverage Ratio)Cash-on-Cash Return