Montgomery 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).

$1,0462-bedroom FMR, FY2027

$9001-bedroom FMR, FY2027

$77,30080% income limit, family of 4 (FY2026)

$96,600Median family income (FY2026)

The FY2027 Fair Market Rent for a two-bedroom unit in Montgomery County is $1,046 a month, up 8.3% from $966 in FY2026. Montgomery County belongs to the Montgomery 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 Montgomery County by bedroom count

Unit size	FY2027 FMR	FY2026 FMR	Change	Payment standard range (90–110%)
Studio	$895	$802	+11.6%	$806 – $984
1 bedroom	$900	$807	+11.5%	$810 – $990
2 bedrooms	$1,046	$966	+8.3%	$942 – $1,150
3 bedrooms	$1,351	$1,281	+5.5%	$1,216 – $1,486
4 bedrooms	$1,459	$1,399	+4.3%	$1,314 – $1,604

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 Montgomery County that is typically $942 to $1,150 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?

$33,648median income of renter households

$858Median gross rent, all units

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

43%of renter households pay 30% or more of income on rent

At the 30% rule, a renter household earning the local median of $33,648 can afford about $841 a month including utilities. The FY2027 two-bedroom Fair Market Rent of $1,046 is $205 (24.3%) more than that. To rent a two-bedroom at the FMR, a household needs $41,840 a year under the 30% rule, or $37,656 under the common landlord rule that income must be three times the rent.

Montgomery County, ACS 2020–2024	Estimate ± MOE
Median gross rent (rent + utilities)	$858 ±$46
Median income of renter households	$33,648 ±$3,738
Renters paying 30% or more of income (cost-burdened)	43.0% ±5.7
Renters paying 50% or more (severely cost-burdened)	18.8% ±4.4
Renter households (where the share can be computed)	2,753

Change since 2015–2019

	ACS 2015–2019	ACS 2020–2024	Change
Median gross rent	$684	$858	+25.4%
Median renter household income	$31,598	$33,648	+6.5%
Renters paying 30%+ of income	37.4%	43.0%	+5.6 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 Montgomery County (FY2026)

Income limits decide who qualifies for Section 8 vouchers, public housing and most HUD-assisted units. The area median family income is $96,600 (FY2025: $91,200, +5.9%). 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%)	$20,300 +6.0%	$23,200 +5.9%	$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%)	$33,850 +5.9%	$38,650 +5.9%	$43,500 +6.0%	$48,300 +5.9%	$52,200 +6.0%	$56,050 +6.0%	$59,900 +5.9%	$63,800 +6.0%
Low income (80%)	$54,150 +6.0%	$61,850 +5.9%	$69,600 +5.9%	$77,300 +6.0%	$83,500 +6.0%	$89,700 +6.0%	$95,900 +6.0%	$102,050 +6.0%

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.