Location: Adams County, IN | Metro: Adams 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 | $930 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $386,343 | 0.26% | F |
| 3BR | $1,290 | $269,044 | 0.48% | F |
| 4BR | $1,420 | $397,845 | 0.36% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 46772, which includes Monroe, Indiana in Adams County, operates under specific financial parameters that landlords should understand. For a two-bedroom apartment in this ZIP code, the SAFMR (Small Area Fair Market Rent) for fiscal year 2026 is set at $960. This figure represents the maximum amount that a Section 8 voucher can cover for rent in this specific area.
Local market rent, according to the latest Census ACS data, averages $813 for a two-bedroom unit. This means that the SAFMR is higher than the average market rent, providing a potential advantage for landlords who participate in the program.
A Section 8 voucher pays a portion of the rent based on the tenant's income. Typically, the tenant is responsible for paying 30% of their adjusted monthly income towards rent. The remaining balance up to the SAFMR is covered by the government. In addition to rent, there are utility allowances that can be included in the total reimbursement package. These allowances vary but generally provide an additional $200 to $300 per month for utilities.
To illustrate, if a tenant's income is such that they pay $258 towards the rent, then the government would reimburse the landlord the difference between the tenant's contribution and the SAFMR. In this case, the government would cover the remaining $702 ($960 - $258).
If we consider the average local market rent of $813, the government would still reimburse up to the SAFMR of $960. This means that even if you charge the average market rent, the voucher will cover the entire amount, leaving no gap for the tenant to make up. However, if you charge more than the average market rent, say $900, the government would still only reimburse up to $960, including any applicable utility allowances.
In ZIP 46772, the typical reimbursement gap or surplus for a two-bedroom unit would result in a surplus for landlords who charge below or at the SAFMR. If the market rent is $813 and the SAFMR is $960, landlords could expect a surplus of $147 per month before considering any utility allowances. This makes participating in the Section 8 program financially viable for landlords in this area, as it ensures a steady stream of rental income without the risk of non-payment common in other rental scenarios.
Landlords must ensure that their rental units meet the Housing Quality Standards (HQS) required by the Section 8 program. While the SAFMR provides a benchmark for the maximum rent, landlords should also factor in the cost of maintaining these standards when setting their rental rates.
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.