Location: Parke County, IN | Metro: Parke County, IN
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 | $870 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,160 | $84,766 | 1.37% | A |
| 3BR | $1,520 | $157,379 | 0.97% | C |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 47862, which includes Montezuma, IN, and parts of Parke County, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2024 is set at $1050. This SAFMR is specifically tailored for this ZIP code, ensuring it reflects the local housing market conditions accurately.
In comparison, the local market rent for a two-bedroom unit, based on Census ACS data, averages at $936. This indicates that the SAFMR is higher than the current market rent, which can be beneficial for landlords participating in the program.
A voucher payment under Section 8 consists of two primary components: the tenant's portion and the subsidy provided by the Housing Choice Voucher program. The tenant's portion is typically 30% of their adjusted income, while the remaining amount is covered by the voucher up to the SAFMR limit.
To illustrate, if a tenant's monthly adjusted income is $1500, they would contribute 30% of this, or $450, toward the rent. The voucher program would then cover the difference between the tenant's contribution and the SAFMR, up to the maximum limit. In this case, the voucher would pay $600 ($1050 - $450).
Utility allowances are also factored into the overall compensation package. However, these allowances do not directly affect the rental payment but can provide additional support to tenants for covering their utility expenses.
Given the local market rent of $936, landlords would receive a full reimbursement of the market rent plus an additional $114 per month, resulting in a total reimbursement of $1050. This creates a surplus for landlords, as the SAFMR exceeds the average market rent in the area.
In summary, landlords in ZIP code 47862 can expect a reimbursement of the SAFMR rate of $1050 for a two-bedroom unit, which is above the local market rent of $936. This results in a surplus of $114 per month, making participation in the Section 8 program financially advantageous.
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.