Section 8 Payment Standards — Indianapolis, Indiana (FY 2026)
HUD Small Area Fair Market Rent (SAFMR) data for Indianapolis ZIP codes, plus how Section 8 rent compares to typical market asking rents.
Marion County is one of the largest Midwest metros where Section 8 underwriting changes the cash-flow picture on sub-$150k homes.
County est. 2BR SAFMR
$1,473
County median home value
$234,107
Est. Section 8 yield
7.6%
On a typical Indianapolis county home, HUD's 2BR limit ($1,473/mo) vs an estimated market asking rent (~$1,873/mo) suggests a +-$400/mo Section 8 premium before utilities, payment standard adjustments, and rent reasonableness.
Sample Indianapolis ZIP codes — FY 2026 SAFMR
Payment standards vary by ZIP and bedroom count. Always confirm current limits with the local housing authority before underwriting a deal.
| ZIP | 0BR | 1BR | 2BR | 3BR | 4BR |
|---|---|---|---|---|---|
| 46201 | $970 | $1,100 | $1,280 | $1,660 | $2,030 |
| 46218 | $960 | $1,080 | $1,260 | $1,630 | $2,000 |
| 46222 | $1,040 | $1,180 | $1,370 | $1,770 | $2,170 |
Why Section 8 rent matters in Indianapolis
Most investors underwrite Indianapolis rentals using Zillow or market asking rent. Section 8 uses HUD SAFMR payment standards — and in many Indiana markets the gap between HUD rent and market rent is what makes a property cash-flow.
Local PHAs may set payment standards between 90% and 110% of SAFMR, subtract utility allowances, and run rent reasonableness tests. Use full SAFMR as a ceiling, not a guarantee on every door.
Search live Indianapolis listings scored on Section 8 rent
Rich from Section 8 merges live for-sale inventory in Indianapolis, IN with official HUD SAFMR data, rent gap scoring, and instant cash-flow underwriting — not Zillow rent guesses.
Get Instant Access — $99.97/mo