Location: Rush County, IN | Metro: Decatur County, IN
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 | $760 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $180,657 | 0.56% | F |
| 3BR | $1,210 | $236,133 | 0.51% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 46156, located in Milroy, Indiana, within Rush County, operate under specific financial guidelines that impact both landlords and tenants. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $1,050. This figure represents the maximum amount that the Section 8 program will pay for a two-bedroom unit in this area.
In contrast, the local market rent for a similar unit is considerably lower at $823, based on recent Census ACS data. This discrepancy between the SAFMR and the actual market rent is significant when considering the financial dynamics of Section 8 participation.
A landlord's income from a Section 8 voucher is determined by the SAFMR, but it's important to understand that the total payment received includes both the tenant's contribution and the utility allowance. For a two-bedroom unit, the tenant typically pays 30% of their adjusted income towards rent. If we assume an average adjusted income of $1,750 (the median household income in Rush County), the tenant would contribute approximately $525 towards rent.
The remaining balance is covered by the Section 8 program up to the SAFMR limit. In this case, the program would cover $525 to meet the $1,050 SAFMR. However, since the market rent is only $823, the landlord receives the full $823, with the Section 8 program covering $298 ($823 - $525).
Additionally, there is a utility allowance which varies but can be estimated at around $150 for a two-bedroom unit. This allowance is also paid by the Section 8 program, bringing the total reimbursement to the landlord to $448 ($298 + $150).
Therefore, in ZIP 46156, landlords participating in the Section 8 program for a two-bedroom unit can expect a reimbursement gap. Given the market rent of $823, landlords would have a surplus of $375 if they charged the market rate, as the combined tenant and government payments exceed the market rent. This surplus can help cover any additional costs such as maintenance and property management fees.
To summarize, the SAFMR for a two-bedroom apartment in ZIP 46156 is $1,050, while the local market rent is $823. Landlords receive a total of $448 from the Section 8 program, leading to a surplus of $375 when charging the market rate. This economic model benefits landlords by ensuring they receive at least the market rate, often more, thereby making Section 8 participation financially viable.
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.