Location: Fort Wayne, IN | Metro: Fort Wayne, 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 | $1,160 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,410 |
| 3 Bedrooms | $1,730 |
| 4 Bedrooms | $1,900 |
| 5 Bedrooms | $2,204 |
| 6 Bedrooms | $2,468 |
| 7 Bedrooms | $2,665 |
| 8 Bedrooms | $2,798 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,410 | $246,004 | 0.57% | F |
| 3BR | $1,730 | $283,167 | 0.61% | D |
| 4BR | $1,900 | $353,428 | 0.54% | F |
| 5BR | $2,204 | $441,909 | 0.5% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 46804, located in Fort Wayne, Indiana, within Allen County, operate under specific guidelines that impact both landlords and tenants. For a two-bedroom apartment in this ZIP code, the SAFMR (Small Area Fair Market Rent) for FY 2024 is set at $1230. This SAFMR is the maximum amount that the Housing Choice Voucher program will pay for rent in this specific ZIP code.
The local market rent, as measured by ZORI (Zillow Observed Rent Index), is significantly higher at $1941. This difference highlights the gap between what landlords can charge in the open market and what they might receive through a Section 8 voucher. However, landlords should understand that the voucher does not cover only the rent but also includes a utility allowance and the tenant's contribution towards the rent.
A voucher holder is required to contribute 30% of their income towards the rent. If we assume an average income for a voucher recipient, the tenant's portion would be calculated based on this percentage. Utility allowances are additional payments made directly to the landlord, which vary but typically cover a portion of the tenant's heating, cooling, water, and electricity costs. These allowances do not increase the total rent but provide extra compensation for utilities.
To illustrate, if a tenant's income is $1000 per month, their contribution towards the rent would be $300 (30% of $1000). The remaining amount, up to the SAFMR of $1230, would be covered by the government. This means the landlord would receive a minimum of $300 from the tenant plus any applicable utility allowance, up to the full SAFMR of $1230.
The reimbursement gap, or the difference between the local market rent ($1941) and the SAFMR ($1230), is $711. This represents the shortfall a landlord must accept when renting to a Section 8 tenant compared to the market rate. Alternatively, if the local market rent were lower than the SAFMR, it could represent a surplus for the landlord, though this is less common.
In summary, landlords in ZIP 46804 should expect a voucher payment that covers up to $1230 of the rent for a two-bedroom unit, plus a tenant contribution and utility allowances. Given the local market rent, there is a consistent reimbursement gap of $711 that landlords need to consider when deciding whether 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.