Indianapolis Section 8 Rent Limits 2027 (Fair Market Rent)
HUD FY2027 Fair Market Rents for the Indianapolis-Carmel, IN HUD Metro FMR Area, in effect from October 1, 2026.
How we made this page: a script read every number from HUD's FY2027 and FY2026 FMR files (fetched 2026-10-19). We check sample pages against the HUD files by hand. This page is not legal advice.
Contents
FY2027 Fair Market Rents by bedrooms
HUD sets one Fair Market Rent for each unit size in the Indianapolis-Carmel, IN HUD Metro FMR Area. The FMR is a gross rent: shelter rent plus utilities (HUD). HUD area code: METRO26900M26900.
| Unit size | FY2027 FMR | FY2026 FMR | Change | Change, % |
|---|---|---|---|---|
| Studio (0 BR) | $1,187 | $1,118 | +$69 | +6.2% |
| 1 bedroom | $1,336 | $1,267 | +$69 | +5.4% |
| 2 bedrooms | $1,536 | $1,473 | +$63 | +4.3% |
| 3 bedrooms | $1,991 | $1,907 | +$84 | +4.4% |
| 4 bedrooms | $2,425 | $2,338 | +$87 | +3.7% |
Source: HUD FY2027 FMRs and HUD revised FY2026 FMRs (in effect from May 21, 2026, until FY2027 started).
What changed from 2026
The 2-bedroom FMR in Indianapolis is $63 (4.3%) more than in FY2026. By unit size, the change is +6.2% for a studio, +5.4% for 1 bedroom, +4.3% for 2, +4.4% for 3 and +3.7% for 4 bedrooms.
Payment standard vs FMR
The payment standard is the amount the housing authority uses to calculate the voucher subsidy. Each public housing agency (PHA) can set its payment standard at 90% to 110% of the FMR without HUD approval (24 CFR 982.503). A PHA must update its payment standards within 3 months of a new FMR if they are outside that range.
| Unit size | FY2027 FMR | 90% of FMR | 110% of FMR |
|---|---|---|---|
| Studio (0 BR) | $1,187 | $1,068 | $1,306 |
| 1 bedroom | $1,336 | $1,202 | $1,470 |
| 2 bedrooms | $1,536 | $1,382 | $1,690 |
| 3 bedrooms | $1,991 | $1,792 | $2,190 |
| 4 bedrooms | $2,425 | $2,183 | $2,668 |
One large housing authority in this area: Indianapolis Housing Agency. Other PHAs in the same FMR area can set different payment standards. Check your housing authority for its current payment standards.
In some metro areas, HUD requires PHAs to use Small Area FMRs (by ZIP code). There, the payment standard depends on the ZIP code of the unit. Check your housing authority.
Steps for landlords
Steps for a landlord to rent a unit to a Housing Choice Voucher (Section 8) tenant in Indianapolis:
- Get the payment standard. Ask the housing authority for the payment standard for your unit size and ZIP code.
- Pass the inspection. The PHA inspects the unit before it approves the tenancy. The unit must meet HUD housing quality standards (24 CFR 982.305).
- Show that the rent is reasonable. The PHA compares your rent with similar units that do not get assistance. It cannot approve the lease before it finds the rent reasonable (24 CFR 982.507).
- Sign the HAP contract. The housing assistance payments (HAP) contract is between you and the PHA. The PHA pays its part of the rent to you. The tenant pays the rest.
- Know the 40% limit. At the first lease, if the gross rent is more than the payment standard, the family share can be at most 40% of its monthly adjusted income (24 CFR 982.305).
Rules and forms differ by housing authority. This page is not legal advice. Check your housing authority.
Counties in this FMR area
The Indianapolis-Carmel, IN HUD Metro FMR Area includes these counties: Marion County, IN; Hamilton County, IN; Hendricks County, IN; Johnson County, IN; Hancock County, IN; Boone County, IN; Morgan County, IN; Shelby County, IN; Brown County, IN. HUD lists each county in the FY2027 file.
Nearby metros
- Cincinnati Section 8 rent limits 2027: 2-bedroom FMR $1,442
- Chicago Section 8 rent limits 2027: 2-bedroom FMR $2,011
- Columbus, OH Section 8 rent limits 2027: 2-bedroom FMR $1,602
See all 50 metros in one table, or read our guides for property managers.
Questions
How much does Section 8 pay for a 2-bedroom in Indianapolis in 2027?
The FY2027 Fair Market Rent for a 2-bedroom in the Indianapolis-Carmel, IN HUD Metro FMR Area is $1,536 (HUD). The housing authority sets the payment standard, which can be 90% to 110% of the FMR without HUD approval: about $1,382 to $1,690. Check your housing authority for the exact amount.
What is the 2027 Fair Market Rent in Indianapolis for 1, 3 and 4 bedrooms?
HUD's FY2027 FMRs for the Indianapolis-Carmel, IN HUD Metro FMR Area are $1,187 for a studio, $1,336 for 1 bedroom, $1,991 for 3 bedrooms and $2,425 for 4 bedrooms.
When do the 2027 Fair Market Rents take effect?
The FY2027 FMRs are in effect from October 1, 2026 (Federal Register 91 FR 56156, Docket FR-6553-N-03, published September 1, 2026). In an area where a housing authority asked HUD for a reevaluation, the FY2026 FMRs can stay in effect for some time.
Is the Fair Market Rent the most a landlord can charge a voucher tenant?
No. The FMR is the base for the payment standard, which limits the subsidy, not the rent. The housing authority must find the rent reasonable, and at the first lease the family share can be at most 40% of its monthly adjusted income. Check your housing authority for the rules in your area.
Sources
- HUD User: FY2027 FMRs, county-level data (FY27_FMRs.xlsx)
- HUD User: revised FY2026 FMRs, county-level data (FY26_FMRs_revised.xlsx)
- HUD User: Fair Market Rents (FY2027 and FY2026 data)
- Federal Register: FY2027 Fair Market Rents, 91 FR 56156, Docket FR-6553-N-03 (2026-09-01)
- eCFR: 24 CFR 982.503, payment standard amount and schedule
- eCFR: 24 CFR 982.305, PHA approval of assisted tenancy
- eCFR: 24 CFR 982.507, rent to owner: reasonable rent