Section 8 Fair Market Rent (FMR) for ZIP 46916 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 46916, located in Carroll County, Indiana, can be dissected into several key components. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2024 is set at $860. This figure represents the maximum amount that the Housing Choice Voucher program will pay toward the rent for a two-bedroom unit in this area.

To understand what this means for landlords, it's crucial to factor in the tenant's portion of the rent and any utility allowances. Typically, tenants contribute 30% of their adjusted income toward rent. For example, if a tenant has an adjusted income of $1,500 per month, they would contribute $450 toward the rent. The remaining balance is covered by the Section 8 voucher up to the SAFMR limit.

In addition to the rent, utility allowances also play a role in the overall compensation. Utility allowances vary but are generally around $200-$300 per month for a two-bedroom apartment. This allowance is intended to cover the tenant's electricity, gas, water, and sewer costs. However, the exact amount depends on the specific circumstances and the housing authority's guidelines.

Let's consider a scenario where a landlord charges $900 for a two-bedroom unit, which is slightly above the SAFMR. If the tenant contributes $450 and receives a utility allowance of $250, the total reimbursement from the voucher program would be $700 ($450 + $250). Therefore, the landlord would receive $700 from the voucher program and $450 from the tenant, totaling $1,150. However, since the SAFMR is capped at $860, the landlord would only receive $860 from the voucher program, resulting in a total of $1,100.

This example highlights a potential reimbursement gap. In this case, the landlord would have a shortfall of $100 per month because the total reimbursement does not cover the full $900 rent. Conversely, if the market rent were lower than the SAFMR, landlords could see a surplus in their monthly rental income.

Given the SAFMR of $860 and assuming a tenant contribution of $450 and a utility allowance of $250, landlords in ZIP 46916 would typically face a reimbursement gap if they charge more than $860. If the market rent is indeed lower than the SAFMR, landlords would benefit from a surplus, but the exact amount depends on the actual market rates and tenant contributions.

Data Sources: FMR data from HUD (2027).

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.