Location: Lawrence County, IN | Metro: Lawrence 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 | $760 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $129,454 | 0.78% | D |
| 3BR | $1,210 | $195,484 | 0.62% | D |
U.S. Census Bureau data (2024)
In ZIP code 47451, which includes Oolitic, Indiana in Lawrence County, the economics of Section 8 vouchers are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment is set at $960 per month for fiscal year 2026. This figure is specifically tailored to reflect the rental costs in this ZIP code rather than being uniform across the broader metro or county area.
The local market rent, according to Census ACS data, is $814 per month for a similar unit. This means landlords participating in the Section 8 program can potentially charge more than the average market rate, but they must still adhere to the $960 limit imposed by the SAFMR.
A voucher payment consists of two parts: the tenant's portion and the government's reimbursement. The tenant typically pays 30% of their adjusted income towards rent. For instance, if a tenant has an adjusted income of $1,000 per month, they would pay $300 towards rent. The remaining balance is covered by the government, up to the SAFMR limit.
The government also provides utility allowances, which vary based on the size of the apartment and the region. In ZIP 47451, the utility allowance for a two-bedroom unit is included in the total reimbursement but does not exceed the SAFMR cap. If the total cost of rent and utilities exceeds $960, the landlord will not receive additional funds beyond this amount.
To illustrate, let's assume a two-bedroom apartment in ZIP 47451 is rented for the full SAFMR of $960, and the tenant's 30% contribution is $300. The government would then reimburse the landlord $660. However, if the tenant's income is lower and their contribution is only $200, the government would cover $760, again not exceeding the $960 SAFMR.
Given the local market rent of $814, landlords can see a potential surplus when renting to Section 8 tenants. The difference between the SAFMR ($960) and the local market rent ($814) means landlords could receive up to $146 more per month than the average local rent. However, this surplus depends on the actual rent charged and the tenant's income level.
In conclusion, the typical reimbursement gap or surplus for a two-bedroom apartment in ZIP 47451 is a surplus of $146 per month, assuming the landlord charges the maximum allowable under the SAFMR and the tenant's income is low enough that their contribution does not fill the gap entirely. Landlords should be aware that this surplus is not guaranteed and can vary depending on individual tenant circumstances.
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.