Location: White County, IN | Metro: Gary, 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 | $1,000 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,700 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,320 | $179,444 | 0.74% | D |
| 3BR | $1,700 | $265,796 | 0.64% | D |
| 4BR | $1,730 | $324,332 | 0.53% | F |
| 5BR | $2,007 | $352,073 | 0.57% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 47978, which includes Rensselaer, IN, in Jasper County, operate under specific financial guidelines that can impact a landlord's revenue. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2024 is set at $1110. This figure represents the maximum amount that the housing authority will pay towards the rent subsidy for a two-bedroom unit in this specific area.
In contrast, the local market rent for a two-bedroom apartment, based on Census ACS data, is lower at $936. This indicates that the SAFMR is higher than the average market rent, which can be beneficial for landlords who might otherwise struggle to cover costs due to lower market rates.
A Section 8 voucher pays a significant portion of the rent, but it also requires the tenant to contribute a share and accounts for utility allowances. Typically, the tenant is responsible for paying 30% of their adjusted income toward the rent. For example, if a tenant's adjusted monthly income is $1000, they would pay $300 towards the rent. The housing authority then pays the difference between the tenant's contribution and the SAFMR up to $1110.
Utility allowances vary depending on the specific voucher and the household size. In ZIP 47978, the allowance might cover part of the heating, cooling, and electricity expenses. Landlords should ensure that the total rent plus utilities does not exceed the SAFMR of $1110. If the tenant's portion and utility allowances together do not reach $1110, the housing authority will make up the shortfall to ensure the landlord receives the full SAFMR amount.
To illustrate, let's assume a tenant's contribution is $300 and the utility allowance is $200. The housing authority would pay the remaining $610 to reach the SAFMR of $1110. This ensures that landlords receive the full SAFMR even when the local market rent is below this level.
Given that the local market rent is $936, there is a potential surplus for landlords when they participate in the Section 8 program. The difference between the SAFMR and the market rent is $174 per month. This means that landlords in ZIP 47978 could receive an additional $174 above the typical market rent for a two-bedroom unit, making the Section 8 program financially attractive despite the administrative requirements.
It's important to note that while the SAFMR provides a higher baseline payment, landlords must still ensure that the property meets the housing quality standards set by the housing authority. Compliance with these standards is crucial for maintaining eligibility in the 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.