Location: Montgomery County, IN | Metro: Lafayette-West Lafayette, IN HUD Metro FMR Area
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 | $990 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,500 | $249,667 | 0.6% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 47967 are straightforward. For a two-bedroom rental unit, the SAFMR (Small Area Fair Market Rent) is set at $1330 per month for fiscal year 2024. This figure is specific to this ZIP code, meaning it reflects the local rental market conditions accurately.
However, the local market rent, as reported by the Census ACS (American Community Survey), is significantly lower at $875. This discrepancy between the SAFMR and the actual market rent can be advantageous for landlords who are willing to participate in the Section 8 program. Here's why:
A Section 8 voucher holder will pay 30% of their adjusted income towards rent. If we assume an average adjusted income of $1500, the tenant would contribute approximately $450 towards rent. The remainder of the rent is covered by the Housing Authority up to the SAFMR limit.
In addition to the base rent, the Housing Authority also provides utility allowances. These allowances vary but typically cover a portion of electricity, gas, water, and sewage costs. For simplicity, let's say the total utility allowance is around $200.
This means the Housing Authority would reimburse the landlord for the difference between the tenant's contribution and the SAFMR, plus the utility allowance. In our example, the landlord would receive $1330 - $450 = $880 for rent, plus the utility allowance of $200, totaling $1080 per month from the Housing Authority.
To summarize, in ZIP code 47967, landlords participating in the Section 8 program for a two-bedroom unit can expect to receive $1080 per month from the Housing Authority, which is higher than the local market rent of $875. This creates a surplus for the landlord of $205 per month, assuming the market rent remains stable and the landlord charges the maximum allowed by the SAFMR.
It's important to note that while the SAFMR sets the upper limit for what the Housing Authority will pay, landlords must ensure that their units meet all necessary housing quality standards and are priced competitively to attract tenants. Landlords should also be aware that the tenant's contribution and the utility allowance can vary based on individual circumstances.
The typical reimbursement gap or surplus for a two-bedroom unit in ZIP 47967 is therefore a surplus of $205 per month, making Section 8 participation a financially viable option for landlords in this area.
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.