Location: Columbus, IN | Metro: Columbus, IN MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,110 |
| 1 Bedroom | $1,140 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 47236 are governed by the SAFMR (Small Area Fair Market Rent) rates established by HUD (Department of Housing and Urban Development). For fiscal year 2024, the SAFMR for a two-bedroom apartment in this specific ZIP code is set at $1200 per month. This rate is crucial as it determines the maximum amount that a Section 8 voucher can cover.
A landlord participating in the Section 8 program will receive a portion of the rent directly from the tenant, who is required to pay 30% of their adjusted income towards housing costs. The remainder of the rent is then paid by the government, up to the SAFMR limit. It's important to note that utility allowances are also factored into the total payment structure. However, the local market rent for ZIP 47236 is currently unavailable, which makes it difficult to compare the SAFMR to the actual rental market conditions in this area.
To walk through the financials, if a tenant has an adjusted income of $1000 per month, they would be responsible for paying $300 towards rent. This leaves $900 to be covered by the Section 8 voucher. Since the SAFMR for a two-bedroom unit is $1200, the government would cover the remaining $900. If the market rent were higher than $1200, the landlord would not receive the excess amount from the government, creating a potential shortfall. Conversely, if the market rent is lower, the landlord might see a surplus in payments.
In the case where the local market rent is below the SAFMR, landlords could benefit from the difference between the actual rent charged and the SAFMR. For instance, if the market rent is $1100, the landlord would collect the $300 from the tenant and $900 from the government, resulting in a total of $1200. This represents a surplus of $100 above the market rent. However, since the local market rent for ZIP 47236 is not available, it's impossible to provide a precise figure on the surplus or gap landlords might face.
The SAFMR rate is designed to reflect the local rental market conditions accurately. As such, landlords should ensure their rental units meet the quality standards set by the program to avoid any issues with eligibility. Additionally, maintaining a competitive pricing strategy within the SAFMR framework can help attract and retain tenants while ensuring a steady income stream.
Without the exact local market rent, we cannot definitively state the reimbursement gap or surplus for a two-bedroom apartment in ZIP 47236. However, if the market rent were hypothetically $1100, the landlord would have a surplus of $100 per month over the market rent. To determine the actual financial impact, landlords must compare their rental rates to the SAFMR and consider the tenant's contribution and utility allowances.
Data Sources: FMR data from HUD (2027). 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.