Location: Miami County, IN | Metro: Fulton 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 | $990 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $1,790 |
| 5 Bedrooms | $2,076 |
| 6 Bedrooms | $2,325 |
| 7 Bedrooms | $2,511 |
| 8 Bedrooms | $2,637 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,320 | $151,878 | 0.87% | C |
| 3BR | $1,570 | $209,759 | 0.75% | D |
| 4BR | $1,790 | $235,577 | 0.76% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP 46951, Macy, Indiana, within Miami County, can be quite different from the broader market. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) for FY 2026 is set at $1,150. This figure is specific to this ZIP code, meaning it reflects the rental rates considered fair for this particular area.
In contrast, the local market rent for a two-bedroom unit in ZIP 46951 is reported to be $1,038, based on Census ACS data. This difference between the SAFMR and the actual market rent can significantly impact how landlords view the Section 8 program.
A Section 8 voucher is designed to cover the majority of a tenant's rent, but there are several components to consider when determining the total reimbursement. First, the tenant is responsible for paying 30% of their adjusted income towards rent. If we assume an average adjusted income of $2,000 per month, the tenant would pay approximately $600 towards the rent. The remainder, up to the SAFMR of $1,150, would be covered by the Housing Choice Voucher Program.
Additionally, utility allowances are factored into the overall payment. These allowances vary but generally cover a significant portion of the utilities. Assuming an average utility allowance of $200, the total reimbursement a landlord might receive could be calculated as follows:
This means that for a two-bedroom apartment, the landlord would typically receive a combined total of $750 from the tenant and the voucher program, assuming the utility allowance is $200. Given that the local market rent is $1,038, this leaves a gap of $288 per month that the landlord would need to absorb if they were to accept a Section 8 voucher at the market rate.
However, it's important to note that landlords have some flexibility in setting the rent. They can negotiate the rent up to the SAFMR limit of $1,150. If the landlord sets the rent at the SAFMR level, the reimbursement gap would be smaller, or potentially non-existent if the tenant's share plus the voucher amount equals $1,150.
To summarize, in ZIP 46951, landlords accepting a Section 8 voucher for a two-bedroom apartment will likely see a reimbursement of around $750, which is below the local market rent of $1,038. This results in a typical reimbursement gap of $288 per month unless the rent is set higher to bridge the difference.
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.