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 | $780 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $780 | $128,934 | 0.6% | D |
| 2BR | $1,010 | $159,804 | 0.63% | D |
| 3BR | $1,250 | $242,732 | 0.51% | F |
| 4BR | $1,390 | $354,486 | 0.39% | F |
| 5BR | $1,612 | $451,611 | 0.36% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 47601, located in Boonville, Indiana, within Warrick County, are straightforward when analyzed against the local rental market. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for FY 2024 is set at $1000. This figure represents the maximum amount that a landlord can charge a Section 8 tenant for rent. However, it's important to understand how the total payment is structured.
The local market rent for a two-bedroom unit, based on Census ACS data, averages $882. This lower market rate means that landlords in ZIP 47601 can potentially benefit from the higher SAFMR set by HUD. When a tenant uses a Section 8 voucher, they are responsible for paying a portion of the rent, typically around 30% of their income. For simplicity, let's assume the tenant's portion is $300.
The remaining balance is covered by the housing authority. In this case, the housing authority would pay the difference between the tenant's portion and the SAFMR. Thus, the housing authority would reimburse the landlord $700 ($1000 - $300).
In addition to the base rent, there are utility allowances that can vary but are generally around $200-$300 per month. These allowances are designed to help cover the cost of utilities such as electricity, water, and gas. If we take an average utility allowance of $250, this brings the total reimbursement to $950 ($700 + $250).
Given that the local market rent is $882, landlords can expect a slight surplus when accepting a Section 8 tenant. The surplus is calculated as the difference between the total reimbursement and the market rent. In this scenario, the surplus is $68 ($950 - $882).
To summarize, landlords in ZIP 47601 should anticipate receiving a total of $950 per month for a two-bedroom apartment, which includes both the rent and utility allowances. This amount exceeds the average local market rent by $68, providing a modest but steady profit margin for those who participate in the Section 8 program.
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.