Section 8 Fair Market Rent (FMR) for ZIP 46737 - 2027

Location: Steuben County, IN | Metro: Steuben County, IN

Investment Score for ZIP 46737

Monthly Rent (2BR)

$1,240

Median Price (2BR)

$316,586

1% Rule

0.39%

Annual Yield

4.7%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$940
1 Bedroom	$950
2 Bedrooms	$1,240
3 Bedrooms	$1,590
4 Bedrooms	$1,630
5 Bedrooms	$1,891
6 Bedrooms	$2,118
7 Bedrooms	$2,287
8 Bedrooms	$2,401

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$950	$273,477	0.35%	F
2BR	$1,240	$316,586	0.39%	F
3BR	$1,590	$364,499	0.44%	F
4BR	$1,630	$651,623	0.25%	F
5BR	$1,891	$977,194	0.19%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

7,402

Median Household Income

$74,975

Housing Units

4,907

Renter Percentage

13.5%

Occupancy Rate

67.3%

Renter Occupied

445

The economics of Section 8 housing in ZIP code 46737, which includes Fremont, Indiana, and parts of Steuben County, operate under specific financial guidelines. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $1,280. This figure is the maximum amount that the Housing Choice Voucher program will pay towards rent for a unit of this size. However, it's important to note that the local market rent, based on Census ACS data, averages around $837 for a similar unit.

A landlord participating in the Section 8 program can expect the following breakdown for a two-bedroom rental:

Tenant Portion: Tenants are required to contribute a portion of their income towards rent. Typically, this is about 30% of their adjusted monthly income. For example, if a tenant's adjusted monthly income is $1,000, they would be expected to pay $300 towards rent.
Voucher Payment: The voucher will cover the difference between the tenant's contribution and the SAFMR, up to the $1,280 limit. In the case where the market rent is below the SAFMR, the voucher will pay the remaining balance to reach the market rent level. If the market rent is higher than the SAFMR, the landlord must negotiate a lower rent or the tenant must pay the excess out-of-pocket.
Utility Allowances: Utility allowances are also part of the voucher payment but are separate from the rent reimbursement. These allowances vary depending on the region and the type of utilities included in the tenant's bill. For ZIP 46737, these allowances are calculated separately and do not affect the rent reimbursement directly.

Given the SAFMR of $1,280 and the average market rent of $837, landlords in ZIP 46737 can expect a surplus when renting to tenants with vouchers. The surplus is the difference between the SAFMR and the local market rent, which in this case is $443 per month. This means landlords can collect the market rent plus an additional amount from the voucher program, making Section 8 participation financially beneficial in this ZIP code.

To summarize, landlords should understand that the SAFMR sets a cap on what the government will pay towards rent, but since the local market rent is significantly lower, there is a guaranteed surplus. This surplus ensures landlords receive a higher payment than the typical market rate, providing a stable and attractive income stream for those willing to participate in the Section 8 program.

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.