Location: Spencer County, IN | Metro: Evansville, IN MSA
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 | $770 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,050 | $158,648 | 0.66% | D |
| 3BR | $1,370 | $218,059 | 0.63% | D |
| 4BR | $1,450 | $291,774 | 0.5% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 47523, which includes Dale, IN, and Spencer County, revolve around the SAFMR (Small Area Fair Market Rent) set specifically for this ZIP code. For a two-bedroom apartment, the SAFMR for FY 2024 is $880. However, the local market rent, based on Census ACS data, is slightly lower at $858.
A landlord participating in the Section 8 program should understand that the reimbursement they receive is calculated based on the tenant's portion of the rent plus utility allowances. Typically, the tenant's share is capped at 40% of their adjusted income, and the remainder is subsidized by the government. Utility allowances can vary but generally add a fixed amount to the total subsidy.
In ZIP 47523, the SAFMR being set at $880 means that this is the maximum amount the government will pay towards the rent. If the local market rent is below this figure, such as the $858 observed here, the landlord will still be reimbursed up to the SAFMR level, assuming the rental unit meets all quality and safety standards set by the program.
To illustrate, if a tenant's portion of the rent is $343 (which is 40% of the median household income in the area), then the government would cover the remaining amount up to $880. This means the landlord could potentially receive the full SAFMR of $880 even though the market rent is lower. However, the actual reimbursement depends on the tenant's income and the specific utility allowance provided.
In practice, the typical reimbursement for a two-bedroom apartment under the voucher program in ZIP 47523 might be slightly above the local market rent due to the higher SAFMR. This results in a surplus for the landlord, as the government payment exceeds the usual market rate. Therefore, landlords can expect to be paid closer to the SAFMR of $880 rather than the market rent of $858, leading to an additional income of about $22 per month compared to renting without a voucher.
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.