Monroe 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).

$1,2522-bedroom FMR, FY2027

$1,0961-bedroom FMR, FY2027

$87,90080% income limit, family of 4 (FY2026)

$109,900Median family income (FY2026)

The FY2027 Fair Market Rent for a two-bedroom unit in Monroe County is $1,252 a month, up 3.5% from $1,210 in FY2026. Monroe County belongs to the Bloomington, 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 Monroe County by bedroom count

Unit size	FY2027 FMR	FY2026 FMR	Change	Payment standard range (90–110%)
Studio	$1,001	$966	+3.6%	$901 – $1,101
1 bedroom	$1,096	$1,072	+2.2%	$987 – $1,205
2 bedrooms	$1,252	$1,210	+3.5%	$1,127 – $1,377
3 bedrooms	$1,601	$1,572	+1.8%	$1,441 – $1,761
4 bedrooms	$1,932	$1,906	+1.4%	$1,739 – $2,125

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 Monroe County that is typically $1,127 to $1,377 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?

$35,114median income of renter households

$1,193Median gross rent, all units

41%Rent-to-income ratio (median rent ÷ median renter income)

61%of renter households pay 30% or more of income on rent

At the 30% rule, a renter household earning the local median of $35,114 can afford about $878 a month including utilities. The FY2027 two-bedroom Fair Market Rent of $1,252 is $374 (42.6%) more than that. To rent a two-bedroom at the FMR, a household needs $50,080 a year under the 30% rule, or $45,072 under the common landlord rule that income must be three times the rent.

Monroe County, ACS 2020–2024	Estimate ± MOE
Median gross rent (rent + utilities)	$1,193 ±$28
Median income of renter households	$35,114 ±$3,283
Renters paying 30% or more of income (cost-burdened)	60.6% ±3.3
Renters paying 50% or more (severely cost-burdened)	35.8% ±2.5
Renter households (where the share can be computed)	25,095

Change since 2015–2019

	ACS 2015–2019	ACS 2020–2024	Change
Median gross rent	$920	$1,193	+29.7%
Median renter household income	$26,741	$35,114	+31.3%
Renters paying 30%+ of income	60.1%	60.6%	+0.5 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 $1,010 to $1,300 depending on the ZIP code.

All 22 ZIP codes in this FMR area

ZIP	0 BR	1 BR	2 BR	3 BR	4 BR
46151	$1,000	$1,130	$1,300	$1,680	$2,050
47264	$850	$880	$1,100	$1,390	$1,550
47401	$1,030	$1,130	$1,290	$1,650	$1,990
47402	$1,000	$1,090	$1,250	$1,600	$1,930
47403	$940	$1,020	$1,170	$1,500	$1,810
47404	$1,020	$1,110	$1,270	$1,620	$1,960
47405	$1,020	$1,110	$1,270	$1,620	$1,960
47406	$1,010	$1,110	$1,270	$1,620	$1,950
47407	$1,000	$1,090	$1,250	$1,600	$1,930
47408	$1,010	$1,100	$1,260	$1,610	$1,940
47421	$790	$800	$1,050	$1,250	$1,610
47426	$1,000	$1,090	$1,250	$1,600	$1,930
47429	$870	$970	$1,090	$1,420	$1,720
47433	$810	$910	$1,010	$1,300	$1,600
47434	$940	$1,020	$1,170	$1,500	$1,810
47436	$900	$950	$1,160	$1,430	$1,790
47448	$1,000	$1,120	$1,290	$1,670	$2,030
47458	$1,030	$1,130	$1,290	$1,650	$1,990
47460	$870	$970	$1,090	$1,420	$1,720
47462	$840	$870	$1,090	$1,350	$1,680
47464	$870	$970	$1,090	$1,420	$1,720
47468	$990	$1,100	$1,260	$1,620	$1,970

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

HUD income limits for Monroe County (FY2026)

Income limits decide who qualifies for Section 8 vouchers, public housing and most HUD-assisted units. The area median family income is $109,900 (FY2025: $110,600, −0.6%). 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%)	$23,100 +1.5%	$26,400 +1.5%	$29,700 +1.5%	$33,000 +1.5%	$38,680 +2.7%	$44,360 +2.8%	$50,040 +2.9%	$55,720 +2.9%
Very low income (50%)	$38,500 +1.4%	$44,000 +1.4%	$49,500 +1.4%	$54,950 +1.4%	$59,350 +1.4%	$63,750 +1.4%	$68,150 +1.3%	$72,550 +1.4%
Low income (80%)	$61,550 +1.4%	$70,350 +1.4%	$79,150 +1.4%	$87,900 +1.4%	$94,950 +1.4%	$102,000 +1.4%	$109,000 +1.3%	$116,050 +1.4%

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.