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 | $870 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $970 | $157,822 | 0.61% | D |
| 2BR | $1,090 | $202,273 | 0.54% | F |
| 3BR | $1,420 | $265,173 | 0.54% | F |
| 4BR | $1,720 | $334,211 | 0.51% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 47460, which encompasses Spencer, IN, in Owen County, are driven by the federal government's rental assistance program. For fiscal year 2024, the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $1020. This figure represents the maximum amount that the Housing Choice Voucher Program will reimburse landlords per month for renting out a two-bedroom unit.
In contrast, the local market rent for a two-bedroom apartment, according to the Census ACS (American Community Survey), averages at $853. This lower market rate can be advantageous for landlords who are considering participating in the Section 8 program. The difference between the SAFMR and the market rent suggests that landlords may receive a higher monthly payment compared to the average market rate.
A voucher payment consists of two parts: the tenant's contribution and the utility allowance. The tenant is required to pay 30% of their adjusted income towards rent. If we assume an average adjusted income of $1,500, the tenant would contribute approximately $450 towards rent. The remaining amount is covered by the voucher, up to the SAFMR limit. In this case, the voucher would cover $570 ($1020 - $450).
The utility allowance varies but is typically around $200-$300 per month. This allowance is designed to help cover the cost of utilities such as electricity, water, and gas. Therefore, if the utility allowance is $250, the total reimbursement a landlord might receive for a two-bedroom apartment would be $820 ($570 + $250).
This means that in ZIP 47460, landlords participating in the Section 8 program for a two-bedroom apartment would see a $167 surplus each month on average, when comparing the total reimbursement ($820) to the local market rent ($853). This surplus can be significant for landlords and small-portfolio investors looking to maintain steady cash flow while providing affordable housing options.
To summarize, the SAFMR for a two-bedroom apartment in ZIP 47460 is $1020, and the local market rent is $853. With a typical tenant contribution of $450 and a utility allowance of $250, landlords can expect a total reimbursement of $820, leading to a surplus of $167 over the market rate. This makes the Section 8 program financially viable for landlords in this area.
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.