Location: Rush County, IN | Metro: Franklin County, 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 | $780 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,370 |
| 5 Bedrooms | $1,589 |
| 6 Bedrooms | $1,780 |
| 7 Bedrooms | $1,922 |
| 8 Bedrooms | $2,018 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,040 | $143,878 | 0.72% | D |
| 3BR | $1,330 | $228,283 | 0.58% | F |
| 4BR | $1,370 | $259,493 | 0.53% | F |
| 5BR | $1,589 | $270,971 | 0.59% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP 46173, which covers Rushville, IN, and Rush County, hinge on understanding the Specific Area Fair Market Rent (SAFMR) and how it compares to the local market conditions. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $980. This figure is specifically tailored to this ZIP code, reflecting the unique housing costs in Rushville.
However, the local market rent, based on Census American Community Survey (ACS) data, is slightly lower at $924 per month. This difference between the SAFMR and the actual market rent can be significant when calculating your rental income from a Section 8 tenant.
A Section 8 voucher works by covering most of the rent, but not all. The voucher typically pays the difference between the tenant's contribution and the SAFMR. Tenants contribute 30% of their adjusted income towards rent. If we assume an average adjusted income of $1,500, the tenant would pay approximately $450 towards rent. The remainder is covered by the voucher up to the SAFMR limit.
In ZIP 46173, the voucher would cover the remaining $530 ($980 - $450) to reach the SAFMR. Additionally, the voucher includes utility allowances, which can vary but generally add around $200-$300 to the monthly reimbursement. For simplicity, let’s assume a utility allowance of $250.
This means the total reimbursement you receive from the voucher program would be $780 ($530 for rent + $250 for utilities). Given the local market rent of $924, you would have a shortfall of $144 per month if renting at the market rate. Conversely, if you were to rent at the SAFMR rate of $980, your shortfall would increase to $206 per month.
To summarize, landlords in ZIP 46173 should expect a reimbursement of $780 from the voucher program for a two-bedroom unit, assuming the tenant contributes 30% of their adjusted income and receives a utility allowance of $250. This leaves a gap of $144 when renting at the market rate of $924, and a larger gap of $206 when renting at the SAFMR rate of $980.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.