Location: Greene County, IN | Metro: Bloomington, 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 | $940 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,810 |
| 5 Bedrooms | $2,100 |
| 6 Bedrooms | $2,352 |
| 7 Bedrooms | $2,540 |
| 8 Bedrooms | $2,667 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,020 | $194,770 | 0.52% | F |
| 2BR | $1,170 | $235,505 | 0.5% | F |
| 3BR | $1,500 | $278,467 | 0.54% | F |
| 4BR | $1,810 | $372,112 | 0.49% | F |
| 5BR | $2,100 | $483,607 | 0.43% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP 47403, which encompasses parts of Bloomington, Indiana, and Monroe County, are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, set at $1020 for fiscal year 2024. This SAFMR is specifically tailored for this ZIP code, reflecting the local rental market conditions more accurately than broader county or metropolitan averages.
Local market rents, as measured by ZORI (Zillow Observed Rent Index), stand at $1,352 for a similar two-bedroom unit. This difference highlights the financial considerations landlords face when participating in the Section 8 program.
A landlord's actual reimbursement from a Section 8 voucher will depend on the tenant's portion of the rent and any utility allowances. Typically, tenants contribute 30% of their adjusted income toward rent. If we assume an average adjusted income of $1,500 per month, the tenant would pay $450 towards rent. However, the exact amount can vary based on individual circumstances.
The remaining balance up to the SAFMR of $1020 is covered by the housing authority. For instance, if a tenant's contribution is $450, the housing authority would cover the rest, making the total reimbursement $1020. Utility allowances can further impact the final payment. In ZIP 47403, the utility allowance for a two-bedroom apartment is $360 annually, or $30 monthly. This allowance is paid directly to the landlord.
To illustrate, consider a tenant paying $450 monthly, with the housing authority covering the difference to reach the $1020 SAFMR. Adding the $30 utility allowance, the landlord receives a total of $1050 monthly. This figure represents the combined tenant and government payments.
The gap between the SAFMR and the local market rent is significant. At $1020, the SAFMR is $332 below the ZORI of $1352. Thus, landlords who accept Section 8 vouchers for a two-bedroom unit in ZIP 47403 will typically see a reimbursement gap of $332 per month. This means they receive less than the market rent for the same type of property.
In summary, while Section 8 vouchers provide a stable source of income, landlords in ZIP 47403 must account for the reimbursement gap when considering whether to participate in the program. The total reimbursement, including tenant contributions and utility allowances, will be $1050 for a two-bedroom unit, leaving a surplus of $332 for landlords aiming to match local market rates.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.