Location: Henry County, IN | Metro: Henry 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 | $1,210 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,520 |
| 3 Bedrooms | $1,810 |
| 4 Bedrooms | $2,000 |
| 5 Bedrooms | $2,320 |
| 6 Bedrooms | $2,598 |
| 7 Bedrooms | $2,806 |
| 8 Bedrooms | $2,946 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,810 | $198,947 | 0.91% | C |
U.S. Census Bureau data (2024)
In ZIP code 47387, the Section 8 program operates under specific economic parameters that directly impact landlords and small-portfolio investors. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $980. This figure represents the maximum amount that the housing authority will pay on behalf of eligible tenants.
The local market rent, according to Census ACS data, averages $1,708 for a similar two-bedroom unit. This creates a significant disparity between the market rate and the SAFMR. To understand how this affects your rental income, consider the following breakdown:
A voucher holder typically pays 30% of their adjusted income toward rent, which includes both the rent and utilities. If we assume an average adjusted income of $1,300 per month (this can vary widely based on individual circumstances), the tenant's contribution would be $390. The housing authority then covers the remaining amount up to the SAFMR of $980.
This means the total rent paid by the tenant and the housing authority combined would be $980. However, there is also a utility allowance, which is a fixed amount determined by the housing authority. For simplicity, let’s say the utility allowance is $200. This brings the total reimbursement from the housing authority to $1,180 ($980 for rent plus $200 for utilities).
Given the local market rent of $1,708, landlords accepting Section 8 vouchers in ZIP 47387 would see a shortfall of $528 per month on a two-bedroom unit. This shortfall is the difference between the market rent and the total reimbursement from the housing authority.
To summarize, landlords in ZIP 47387 who accept Section 8 vouchers for a two-bedroom apartment can expect to receive $1,180 monthly, consisting of $390 from the tenant and $790 from the housing authority. This leaves a gap of $528 compared to the local market rent of $1,708. This economic reality must be considered 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.