The Muncie mayor's office says FBI agents searched the city building commissioner's office.
The search on Thursday comes nearly nine months after Mayor Dennis Tyler confirmed that the FBI was investigating the city government for possible wrongdoing.
Tyler says the city intends to cooperate fully in the investigation and looks forward to a complete resolution of any issues.
The building commissioner's office in Muncie City Hall was closed after agents arrived, with paper covering up windows next to the door.
FBI spokeswoman Cathy Burton said she couldn't release any information about the Muncie search.
No arrests or charges have been announced stemming from the investigation.