Location: Orange County, IN | Metro: Orange 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 | $830 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $152,382 | 0.66% | D |
| 3BR | $1,390 | $234,452 | 0.59% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 47469, which covers West Baden Springs, IN in Orange County, can be analyzed based on the provided data. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $960. This figure is specific to this ZIP code and reflects the rental market conditions here.
In contrast, the local market rent for a two-bedroom unit, according to Census ACS data, is $783. This lower figure represents the average rent paid by tenants without a voucher in the same area. It's important for landlords to understand that the SAFMR is the maximum amount that the government will pay for a Section 8 voucher, not necessarily the amount they will receive.
A landlord participating in the Section 8 program should know that the voucher does not cover the entire rent. Tenants are required to contribute a portion of their income towards the rent, typically 30% of their adjusted monthly income. This amount is subtracted from the total SAFMR to determine the subsidy amount. For instance, if a tenant has an adjusted monthly income of $1,500, their contribution would be $450, leaving a subsidy of $510 from the government.
Beyond the base rent, there are utility allowances. These vary but generally add a few hundred dollars to the reimbursement. However, the exact amount depends on the specific utilities included in the lease agreement. For simplicity, let's assume an additional $100 for utilities. Thus, the total reimbursement would be $610 ($510 base subsidy + $100 utilities).
This means that the typical reimbursement gap for a two-bedroom apartment in ZIP 47469, given the SAFMR of $960 and assuming a tenant income that leads to a $450 contribution, would be $350 ($960 - $610). This gap represents the difference between the SAFMR and the actual reimbursement received by the landlord, considering the tenant's contribution and utility allowances.
However, it's also worth noting that the local market rent is significantly lower at $783. If a landlord sets their rent at the market rate, the reimbursement gap shrinks to $273 ($783 - $510 base subsidy), or $173 if including the $100 utility allowance. In this scenario, landlords could see a surplus when renting to Section 8 tenants at the market rate, as the government reimbursement exceeds the local market rent.
To summarize, landlords in ZIP 47469 must consider both the SAFMR and the local market rent when setting their rates for Section 8 vouchers. The reimbursement gap or surplus depends on the rent charged and the tenant's income contribution. At the market rate, landlords can expect a smaller gap or even a surplus, making participation in the Section 8 program financially viable.
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.