Location: Gibson 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $127,771 | 0.79% | D |
| 3BR | $1,250 | $194,892 | 0.64% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP 47612, which encompasses Poseyville, IN, and parts of Posey County, operate under specific parameters that are crucial for landlords and small-portfolio investors to understand. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2024 is set at $930. This figure is important because it represents the maximum amount that a Section 8 voucher can cover for rent in this area.
In comparison, the local market rent for a similar unit is recorded at $753, according to the Census American Community Survey (ACS). This indicates that the SAFMR is higher than the average market rent, which could be beneficial for landlords who are participating in the Section 8 program.
A Section 8 voucher does not cover the entire rent amount; instead, it covers the difference between the market rent and 30% of the tenant's income, up to the SAFMR limit. Additionally, there are utility allowances that are factored into the total reimbursement. For ZIP 47612, the utility allowance varies but typically ranges around $200-$300 per month, depending on the household size and composition.
To illustrate, if a tenant's income is $1,500 per month, they would contribute 30% of their income towards rent, which amounts to $450. If the market rent is $753, the voucher would cover the remaining $303 ($753 - $450), plus any applicable utility allowance. Therefore, the total reimbursement to the landlord would be approximately $503-$603 ($303 + $200-$300).
Given that the SAFMR is $930 and the local market rent is $753, landlords in ZIP 47612 can expect a surplus when renting to Section 8 tenants. The surplus is calculated as the difference between the SAFMR and the local market rent, minus the tenant's contribution and utility allowance. In this scenario, the surplus is about $17-$227 per month, making it a potentially attractive option for landlords looking to ensure steady rental income.
The typical reimbursement gap or surplus for a two-bedroom apartment in ZIP 47612, considering the above factors, leans towards a surplus. Landlords should review individual cases, as the exact surplus will depend on the tenant's income and specific utility needs, but overall, the economics favor landlords due to the higher SAFMR compared to the local market rent.
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.