Section 8 Fair Market Rent (FMR) for ZIP 47737 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 housing in ZIP code 47737, located in Evansville, Indiana, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2024 is set at $1090. This figure represents the maximum amount that the Housing Choice Voucher program will reimburse landlords for rent.

A key point to understand is that the tenant is responsible for paying a portion of the rent, which is typically 30% of their adjusted income. For instance, if a tenant's monthly income is $1800, they would pay around $540 towards rent. The remaining amount up to the SAFMR is covered by the voucher program. In the case of ZIP 47737, this means that after the tenant's contribution, the voucher would cover the difference up to $1090.

In addition to the base rent, the Section 8 program also provides utility allowances. These allowances vary based on the size of the apartment and the specific needs of the household. However, these allowances do not increase the overall reimbursement limit; they are separate payments made directly to the tenant to help cover utilities. Therefore, landlords should not factor these into the total rent they expect to receive from the voucher program.

Given the SAFMR of $1090 and assuming a tenant pays 30% of their income, the reimbursement gap or surplus can be calculated. If the local market rent for a two-bedroom apartment were higher than $1090, landlords would face a shortfall. Conversely, if the local market rent is lower, landlords might see a surplus. Since the local market rent data for ZIP 47737 is currently unavailable, we cannot determine the exact gap or surplus. However, it's important to note that the SAFMR is designed to reflect the average market rent for the area, so landlords can expect to be fairly compensated.

To summarize, in ZIP 47737, landlords participating in the Section 8 program can expect to receive up to $1090 per month for a two-bedroom apartment. This amount includes the tenant's payment and the voucher program's reimbursement, but does not include any utility allowances. Landlords must ensure their rent does not exceed this limit to remain eligible for the program. Once the tenant portion and utility allowances are factored in, the typical reimbursement scenario would either match the local market rent or create a gap or surplus depending on the actual market conditions.

Data Sources: FMR data from HUD (2027).

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.