Decatur County, IN: Fair Market Rent 2027 and Income Limits

Official HUD figures for landlords and renters, effective October 1, 2026 (rents) and May 1, 2026 (income limits).

$1,1122-bedroom FMR, FY2027

$8501-bedroom FMR, FY2027

$74,65080% income limit, family of 4 (FY2026)

$93,300Median family income (FY2026)

The FY2027 Fair Market Rent for a two-bedroom unit in Decatur County is $1,112 a month, up 3.8% from $1,071 in FY2026. Decatur County belongs to the Decatur County, IN FMR area (non-metro county), so the same figures apply across that area. FMRs are gross rents: rent plus all tenant-paid utilities except phone, cable and internet.

Fair market rent in Decatur County by bedroom count

Unit size	FY2027 FMR	FY2026 FMR	Change	Payment standard range (90–110%)
Studio	$832	$768	+8.3%	$749 – $915
1 bedroom	$850	$816	+4.2%	$765 – $935
2 bedrooms	$1,112	$1,071	+3.8%	$1,001 – $1,223
3 bedrooms	$1,325	$1,284	+3.2%	$1,193 – $1,457
4 bedrooms	$1,461	$1,418	+3.0%	$1,315 – $1,607

Source: HUD Fair Market Rents FY2027 (effective October 1, 2026) and FY2026 (revised file), details.

What can a landlord charge a Section 8 tenant here?

The FMR is not a cap on what you can ask on the open market. For a Housing Choice Voucher tenant, the local housing authority sets a payment standard, normally between 90% and 110% of the FMR (or of the ZIP-level Small Area FMR where those apply). For a two-bedroom unit in Decatur County that is typically $1,001 to $1,223 including utilities. You can charge more than the payment standard if the rent passes the housing authority's rent-reasonableness test and, at move-in, the tenant's share stays within 40% of their adjusted monthly income. Ask the housing authority for its current payment standard schedule.

Can local renters afford the fair market rent?

$37,449median income of renter households

$861Median gross rent, all units

28%Rent-to-income ratio (median rent ÷ median renter income)

36%of renter households pay 30% or more of income on rent

At the 30% rule, a renter household earning the local median of $37,449 can afford about $936 a month including utilities. The FY2027 two-bedroom Fair Market Rent of $1,112 is $176 (18.8%) more than that. To rent a two-bedroom at the FMR, a household needs $44,480 a year under the 30% rule, or $40,032 under the common landlord rule that income must be three times the rent.

Decatur County, ACS 2020–2024	Estimate ± MOE
Median gross rent (rent + utilities)	$861 ±$40
Median income of renter households	$37,449 ±$7,343
Renters paying 30% or more of income (cost-burdened)	35.7% ±7.8
Renters paying 50% or more (severely cost-burdened)	21.3% ±6.9
Renter households (where the share can be computed)	2,252

Change since 2015–2019

	ACS 2015–2019	ACS 2020–2024	Change
Median gross rent	$791	$861	+8.8%
Median renter household income	$40,863	$37,449	−8.4%
Renters paying 30%+ of income	33.5%	35.7%	+2.2 pts

Rent-to-income calculator: does an applicant qualify? → · Most affordable counties to rent in this state →

Source: U.S. Census Bureau, American Community Survey 5-Year Estimates 2020–2024 and 2015–2019 (tables B25064, B25119, B25070). ± = margin of error at 90% confidence. Dollar figures are not adjusted for inflation.

HUD income limits for Decatur County (FY2026)

Income limits decide who qualifies for Section 8 vouchers, public housing and most HUD-assisted units. The area median family income is $93,300 (FY2025: $93,700, −0.4%). Small figures under each limit show the change from FY2025.

Household size	1 person	2 people	3 people	4 people	5 people	6 people	7 people	8 people
Extremely low income (30%)	$19,600 −0.5%	$22,400 −0.4%	$27,320 +2.5%	$33,000 +2.6%	$38,680 +2.7%	$44,360 +2.8%	$50,040 +2.9%	$55,720 +2.9%
Very low income (50%)	$32,700 −0.3%	$37,350 −0.4%	$42,000 −0.5%	$46,650 −0.4%	$50,400 −0.4%	$54,150 −0.4%	$57,850 −0.4%	$61,600 −0.4%
Low income (80%)	$52,300 −0.4%	$59,750 −0.4%	$67,200 −0.4%	$74,650 −0.4%	$80,650 −0.4%	$86,600 −0.4%	$92,600 −0.4%	$98,550 −0.4%

The 30% limit is HUD's “extremely low income” limit: the higher of 30% of median income or the federal poverty guideline, but never above the 50% limit. That is why it can rise faster than 30% of median for larger households. Tax-credit (LIHTC) properties use separate Multifamily Tax Subsidy Project limits.

Source: HUD Section 8 Income Limits FY2026 (effective May 1, 2026) and FY2025, details.