Location: Clinton County, IN | Metro: Indianapolis-Carmel, IN HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $850 | $122,484 | 0.69% | D |
| 2BR | $1,040 | $161,040 | 0.65% | D |
| 3BR | $1,380 | $231,288 | 0.6% | F |
| 4BR | $1,560 | $279,268 | 0.56% | F |
| 5BR | $1,810 | $300,261 | 0.6% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 46041, located in Frankfort, IN, Clinton County, revolve around the SAFMR (Small Area Fair Market Rent) which is specifically tailored for this ZIP code. For a two-bedroom apartment in FY 2024, the SAFMR is set at $970. This means that the rate is established for this particular ZIP code and reflects the rental conditions here more accurately than a broader metro or county-level figure.
Local market rent, according to Census ACS data, stands at $906 for a similar unit. This difference between the SAFMR and the market rent can be significant for landlords. When a tenant uses a Section 8 voucher, the government reimburses the landlord for the difference between the tenant's contribution and the SAFMR, up to the SAFMR amount.
The tenant's portion is typically 30% of their adjusted income. If we assume an average adjusted income of $1,500 per month for a household eligible for Section 8, the tenant would contribute $450 towards rent. The remaining $520 would be covered by the government, bringing the total reimbursement to $970. However, if the market rent is lower, at $906, the government will only reimburse up to that amount, which is $906.
In addition to the base rent, Section 8 also provides utility allowances. These vary but are generally modest. For simplicity, let’s say the utility allowance is $100 per month. This allowance is separate from the rent reimbursement and goes directly to the tenant to cover utilities. Therefore, the landlord receives $906 in rent reimbursement plus whatever the tenant pays out-of-pocket for utilities, which is $100 in this case.
This setup ensures that landlords receive a stable and predictable income, even if it is slightly below the SAFMR. In ZIP 46041, the typical reimbursement for a two-bedroom unit would be $906, leaving a surplus of $64 over the local market rent. This surplus can be beneficial for landlords, providing a buffer against potential market fluctuations and ensuring they are paid closer to the SAFMR rather than the sometimes lower market rates.
To summarize, in ZIP 46041, landlords should expect a Section 8 voucher to cover $906 of the rent for a two-bedroom unit, which is the local market rate, and not the higher SAFMR of $970. The utility allowance of $100 goes directly to the tenant. Landlords benefit from a slight surplus of $64, making Section 8 a viable option for maintaining occupancy and cash flow stability in this area.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.