Spencer 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).

$1,0142-bedroom FMR, FY2027

$7751-bedroom FMR, FY2027

$79,50080% income limit, family of 4 (FY2026)

$99,400Median family income (FY2026)

The FY2027 Fair Market Rent for a two-bedroom unit in Spencer County is $1,014 a month, up 6.1% from $956 in FY2026. Spencer County belongs to the Spencer 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 Spencer County by bedroom count

Unit size	FY2027 FMR	FY2026 FMR	Change	Payment standard range (90–110%)
Studio	$706	$659	+7.1%	$636 – $776
1 bedroom	$775	$729	+6.3%	$698 – $852
2 bedrooms	$1,014	$956	+6.1%	$913 – $1,115
3 bedrooms	$1,351	$1,330	+1.6%	$1,216 – $1,486
4 bedrooms	$1,356	$1,382	−1.9%	$1,221 – $1,491

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 Spencer County that is typically $913 to $1,115 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?

$38,036median income of renter households

$751Median gross rent, all units

24%Rent-to-income ratio (median rent ÷ median renter income)

38%of renter households pay 30% or more of income on rent

At the 30% rule, a renter household earning the local median of $38,036 can afford about $951 a month including utilities. The FY2027 two-bedroom Fair Market Rent of $1,014 is $63 (6.6%) more than that. To rent a two-bedroom at the FMR, a household needs $40,560 a year under the 30% rule, or $36,504 under the common landlord rule that income must be three times the rent.

Spencer County, ACS 2020–2024	Estimate ± MOE
Median gross rent (rent + utilities)	$751 ±$136
Median income of renter households	$38,036 ±$9,030
Renters paying 30% or more of income (cost-burdened)	38.3% ±7.3
Renters paying 50% or more (severely cost-burdened)	12.6% ±3.9
Renter households (where the share can be computed)	1,283

Change since 2015–2019

	ACS 2015–2019	ACS 2020–2024	Change
Median gross rent	$708	$751	+6.1%
Median renter household income	$31,716	$38,036	+19.9%
Renters paying 30%+ of income	38.6%	38.3%	−0.3 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 Spencer County (FY2026)

Income limits decide who qualifies for Section 8 vouchers, public housing and most HUD-assisted units. The area median family income is $99,400 (FY2025: $102,900, −3.4%). 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%)	$20,900 −3.2%	$23,850 −3.4%	$27,320 −1.7%	$33,000 +2.6%	$38,680 +2.7%	$44,360 +2.8%	$50,040 +2.9%	$55,720 +2.9%
Very low income (50%)	$34,800 −3.5%	$39,800 −3.4%	$44,750 −3.5%	$49,700 −3.4%	$53,700 −3.4%	$57,700 −3.4%	$61,650 −3.4%	$65,650 −3.4%
Low income (80%)	$55,650 −3.5%	$63,600 −3.4%	$71,550 −3.4%	$79,500 −3.4%	$85,900 −3.4%	$92,250 −3.4%	$98,600 −3.4%	$104,950 −3.4%

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.