Location: Evansville, 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 | $850 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,110 | $76,770 | 1.45% | A |
| 3BR | $1,370 | $115,766 | 1.18% | B |
| 4BR | $1,510 | $138,823 | 1.09% | B |
| 5BR | $1,752 | $182,905 | 0.96% | C |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 47713, located in Evansville, Indiana, Vanderburgh County, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code is set at $990 per month for fiscal year 2024. This SAFMR figure is specifically tailored to reflect the rental conditions within ZIP 47713, meaning it's not averaged out across the broader county or metropolitan area.
The local market rent, as indicated by ZORI (Zillow Observed Rental Index), stands at $995 for a similar two-bedroom unit. Landlords participating in the Section 8 program should understand that the actual payment they receive is composed of the tenant’s contribution and the utility allowance, alongside the government subsidy.
Tenants with a Section 8 voucher are required to pay 30% of their adjusted income toward rent. If we assume an average adjusted income of $1,650 per month for a household eligible for a two-bedroom unit, the tenant would contribute approximately $495 ($1,650 * 0.30) towards the monthly rent. The utility allowance can vary but typically ranges between $200 and $300 per month, depending on the specific circumstances and needs of the tenant.
In ZIP 47713, the total reimbursement to landlords would be the sum of the tenant’s contribution and the utility allowance, capped at the SAFMR of $990. Therefore, if the utility allowance is $250, the landlord would receive $745 ($495 + $250) from the tenant and the government subsidy, totaling $990. This leaves a gap of $5 ($995 - $990) compared to the local market rent.
To summarize, in ZIP 47713, landlords who accept Section 8 vouchers for a two-bedroom apartment will receive a total reimbursement of $990 per month, which includes the tenant’s 30% income contribution and a utility allowance. Given the local market rent of $995, landlords will face a small surplus of $5 per month. This economic scenario underscores the importance of understanding the specific SAFMR and local market conditions when deciding whether to participate in the Section 8 program.
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.