Location: Martin County, IN | Metro: Daviess 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 | $1,240 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $184,115 | 0.55% | F |
| 3BR | $1,240 | $262,521 | 0.47% | F |
| 4BR | $1,340 | $312,944 | 0.43% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 47562, which encompasses Odon, IN, and parts of Daviess County, can be straightforward if understood correctly. For a two-bedroom apartment in this ZIP code, the SAFMR (Small Area Fair Market Rent) for fiscal year 2026 is set at $960. This is the maximum amount that the Housing Choice Voucher program will pay for rent in this specific area.
In contrast, the local market rent for a two-bedroom unit, based on Census ACS data, averages at $548. This lower figure represents what most tenants might typically pay without a voucher, illustrating the potential financial benefit for landlords who accept vouchers.
When a landlord accepts a Section 8 voucher, the payment structure is clear. The voucher program covers the difference between what the tenant can afford and the actual rent. Specifically, the tenant is expected to contribute 30% of their adjusted income toward the rent. If the tenant's income is $1,000 per month, their contribution would be $300. The remaining rent is then paid by the voucher program, up to the SAFMR limit of $960.
In addition to the base rent, the voucher also includes utility allowances. These allowances vary but are intended to cover the cost of utilities for the tenant. For ZIP 47562, the utility allowance is factored into the total reimbursement but does not exceed the SAFMR cap.
To illustrate, consider a two-bedroom apartment rented at the SAFMR rate of $960. If the tenant's contribution is $300, the voucher program would cover the remaining $660. However, if the market rent is only $548, the voucher program would still cover the difference, meaning the landlord receives the full $548 plus any applicable utility allowances.
The typical reimbursement gap or surplus for a two-bedroom unit in ZIP 47562 is a surplus. Landlords receive the full market rent, which is below the SAFMR limit. Therefore, there is no need to reduce the rent to fit within the voucher program's parameters, and landlords are effectively subsidized by the government to the extent of the market rent.
This means that landlords in ZIP 47562 can expect a steady, government-backed rental income that matches the local market rate, without the risk of collecting less than the full rent due to the voucher program. The SAFMR of $960 ensures that even if market rents increase, the reimbursement will remain capped at this level, providing a predictable income stream.
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.