Location: Rush 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 | $1,570 |
| 1 Bedroom | $1,760 |
| 2 Bedrooms | $2,030 |
| 3 Bedrooms | $2,630 |
| 4 Bedrooms | $3,200 |
| 5 Bedrooms | $3,712 |
| 6 Bedrooms | $4,157 |
| 7 Bedrooms | $4,490 |
| 8 Bedrooms | $4,715 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,030 | $187,373 | 1.08% | B |
| 3BR | $2,630 | $255,535 | 1.03% | B |
| 4BR | $3,200 | $303,216 | 1.06% | B |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 46182, which encompasses Waldron, IN, in Shelby County, operate under specific financial guidelines. For a two-bedroom apartment in this ZIP code, the SAFMR (Small Area Fair Market Rent) for fiscal year 2024 is set at $1,160. This figure represents the maximum amount that a Section 8 voucher will cover for rental costs in this specific area.
In contrast, the local market rent for a similar two-bedroom unit runs around $1,600 according to the latest Census ACS data. This higher figure reflects the actual rents being charged by landlords in the private market without the use of vouchers.
When a landlord accepts a Section 8 voucher, the payment structure involves both the government and the tenant contributing to the total rent. The government reimburses the landlord up to the SAFMR of $1,160. The tenant is responsible for paying approximately 30% of their adjusted income towards rent. If the tenant's portion is less than the difference between the market rent and the SAFMR, the landlord does not receive the full market rent. Instead, the landlord receives the tenant's contribution plus the SAFMR reimbursement.
To illustrate, if a tenant's share of the rent is $400, the landlord would receive $400 from the tenant and $1,160 from the government, totaling $1,560. This leaves a shortfall of $40 compared to the local market rent of $1,600. It’s important to note that utility allowances are also factored into the overall payment but do not affect the base rent calculation directly.
The typical reimbursement gap for a two-bedroom unit in ZIP 46182 is therefore $440, calculated as the difference between the local market rent ($1,600) and the SAFMR ($1,160). Landlords must consider this gap when deciding whether to accept a Section 8 voucher. While the program ensures timely payments and reduces vacancy rates, it also means accepting a lower rent than what might be obtained in the open market.
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.