Madison 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).

$1,3312-bedroom FMR, FY2027

$1,0171-bedroom FMR, FY2027

$67,85080% income limit, family of 4 (FY2026)

$83,400Median family income (FY2026)

The FY2027 Fair Market Rent for a two-bedroom unit in Madison County is $1,331 a month, up 10.4% from $1,206 in FY2026. Madison County belongs to the Anderson, IN HUD Metro FMR Area FMR area, 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 Madison County by bedroom count

Unit size	FY2027 FMR	FY2026 FMR	Change	Payment standard range (90–110%)
Studio	$1,011	$898	+12.6%	$910 – $1,112
1 bedroom	$1,017	$919	+10.7%	$916 – $1,118
2 bedrooms	$1,331	$1,206	+10.4%	$1,198 – $1,464
3 bedrooms	$1,743	$1,594	+9.3%	$1,569 – $1,917
4 bedrooms	$1,749	$1,597	+9.5%	$1,575 – $1,923

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 Madison County that is typically $1,198 to $1,464 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?

$36,650median income of renter households

$939Median gross rent, all units

31%Rent-to-income ratio (median rent ÷ median renter income)

49%of renter households pay 30% or more of income on rent

At the 30% rule, a renter household earning the local median of $36,650 can afford about $916 a month including utilities. The FY2027 two-bedroom Fair Market Rent of $1,331 is $415 (45.3%) more than that. To rent a two-bedroom at the FMR, a household needs $53,240 a year under the 30% rule, or $47,916 under the common landlord rule that income must be three times the rent.

Madison County, ACS 2020–2024	Estimate ± MOE
Median gross rent (rent + utilities)	$939 ±$24
Median income of renter households	$36,650 ±$4,568
Renters paying 30% or more of income (cost-burdened)	49.0% ±4.0
Renters paying 50% or more (severely cost-burdened)	25.2% ±3.1
Renter households (where the share can be computed)	14,665

Change since 2015–2019

	ACS 2015–2019	ACS 2020–2024	Change
Median gross rent	$774	$939	+21.3%
Median renter household income	$28,369	$36,650	+29.2%
Renters paying 30%+ of income	49.9%	49.0%	−0.9 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.

Small Area FMRs by ZIP code (FY2027)

In metro areas HUD also publishes ZIP-level Small Area Fair Market Rents. Housing authorities in designated areas must use them for voucher payment standards; others may opt in. Here the two-bedroom SAFMR ranges from $1,090 to $1,900 depending on the ZIP code.

All 21 ZIP codes in this FMR area

ZIP	0 BR	1 BR	2 BR	3 BR	4 BR
46001	$890	$890	$1,170	$1,530	$1,540
46011	$1,150	$1,160	$1,520	$1,990	$2,000
46012	$1,070	$1,080	$1,410	$1,840	$1,860
46013	$980	$990	$1,290	$1,690	$1,700
46015	$1,010	$1,020	$1,330	$1,740	$1,750
46016	$1,050	$1,050	$1,380	$1,810	$1,810
46017	$1,040	$1,050	$1,370	$1,790	$1,800
46018	$1,010	$1,020	$1,330	$1,740	$1,750
46036	$910	$920	$1,200	$1,570	$1,580
46040	$1,250	$1,410	$1,620	$2,110	$2,550
46044	$1,090	$1,100	$1,440	$1,890	$1,890
46048	$1,440	$1,450	$1,900	$2,490	$2,500
46051	$1,290	$1,300	$1,700	$2,230	$2,230
46056	$1,120	$1,120	$1,470	$1,920	$1,940
46060	$1,280	$1,440	$1,660	$2,150	$2,620
46063	$870	$870	$1,140	$1,490	$1,500
46064	$1,190	$1,200	$1,570	$2,050	$2,070
46070	$920	$920	$1,210	$1,580	$1,590
46928	$810	$850	$1,090	$1,440	$1,570
47342	$810	$830	$1,090	$1,440	$1,680
47356	$820	$830	$1,090	$1,440	$1,520

Source: HUD FY2027 Small Area FMRs (effective October 1, 2026).

HUD income limits for Madison County (FY2026)

Income limits decide who qualifies for Section 8 vouchers, public housing and most HUD-assisted units. The area median family income is $83,400 (FY2025: $84,400, −1.2%). 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%)	$17,850 ±0.0%	$21,640 +2.3%	$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%)	$29,700 −0.2%	$33,950 −0.1%	$38,200 −0.1%	$42,400 −0.1%	$45,800 −0.1%	$49,200 −0.1%	$52,600 −0.1%	$56,000 −0.1%
Low income (80%)	$47,500 −0.1%	$54,300 −0.1%	$61,100 −0.1%	$67,850 −0.1%	$73,300 −0.1%	$78,750 −0.1%	$84,150 −0.1%	$89,600 −0.1%

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.