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 | $1,270 |
| 1 Bedroom | $1,280 |
| 2 Bedrooms | $1,650 |
| 3 Bedrooms | $2,030 |
| 4 Bedrooms | $2,250 |
| 5 Bedrooms | $2,610 |
| 6 Bedrooms | $2,923 |
| 7 Bedrooms | $3,157 |
| 8 Bedrooms | $3,315 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,650 | $235,667 | 0.7% | D |
| 3BR | $2,030 | $298,038 | 0.68% | D |
| 4BR | $2,250 | $406,064 | 0.55% | F |
| 5BR | $2,610 | $573,527 | 0.46% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 47725, located in Evansville, Indiana, Vanderburgh County, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $1610 per month for fiscal year 2024. This SAFMR figure represents the maximum amount that the Housing Choice Voucher program will pay towards the rent of a two-bedroom unit in ZIP 47725.
In comparison, the local market rent for a similar two-bedroom unit averages at $1861 per month according to the Census ACS data. This indicates that landlords in ZIP 47725 can expect a slight discrepancy between the market rent and the SAFMR rate.
To break it down further, the total rent a landlord receives under a Section 8 voucher is composed of two parts: the tenant's contribution and the government's reimbursement. The tenant's contribution is typically 30% of their adjusted income. For instance, if a tenant's monthly income is $2000, their portion would be $600. However, the actual amount paid by the tenant can vary based on their specific income and any deductions they qualify for.
The government then covers the difference between the tenant's contribution and the SAFMR rate. In our example, if the tenant contributes $600, the government would reimburse up to $1610 minus the $600, which equals $1010. It's important to note that the government's reimbursement does not exceed the SAFMR rate, even if the market rent is higher.
Additionally, there are utility allowances that can be factored into the total reimbursement. These allowances vary but are designed to help cover the cost of utilities such as electricity, gas, water, and sewer. For ZIP 47725, these allowances add a fixed amount to the reimbursement, though the exact figure would depend on the specifics of the voucher and the household size.
In ZIP 47725, given the SAFMR of $1610 and the average market rent of $1861, landlords would typically see a reimbursement gap of $251 per month for a two-bedroom unit. This means landlords receive $251 less than the market rent when renting to a tenant using a Section 8 voucher.
Understanding these dynamics helps landlords make informed decisions about participating in the Section 8 program. While the reimbursement might not match the local market rent, the program offers stability and a reliable source of income, backed by federal funds.
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.