HUD Fair Market Rent · FY 2026 · effective Oct 1, 2025 to Sep 30, 2026
Fair Market Rent in Montgomery County, Indiana (FY 2026)
$966 a month. That's HUD's FY 2026 Fair Market Rent for a two-bedroom in Montgomery County, and it's the baseline every voucher in Montgomery is measured against.
2 bedroom FMR
$966
FY 2026, utilities included
Payment standard range
$869 to $1,063
90% to 110% of FMR
Income to afford 2BR
$38,640
per year, at 30% of income
Rank in Indiana
58th of 92
by 2BR FMR
HUD has already published FY 2027. On October 1, 2026 the two-bedroom rate in Montgomery moves to $1,046. That's up 8%. The full FY 2027 table is in the history section below.
HUD's number is one input. What does a two-bedroom in Montgomery actually rent for?
Search any address in Montgomery for a rent estimate built from nearby comps, with the HUD figure right next to it.
FY 2026 Fair Market Rents
| Bedrooms | FMR | Payment standard | Income needed | Hourly wage | vs FY 2025 |
|---|---|---|---|---|---|
| Studio | $802 | $722 to $882 | $32,080 | $15.42/hr | +21.5% |
| 1 bedroom | $807 | $726 to $888 | $32,280 | $15.52/hr | +6.5% |
| 2 bedroom | $966 | $869 to $1,063 | $38,640 | $18.58/hr | +2.9% |
| 3 bedroom | $1,281 | $1,153 to $1,409 | $51,240 | $24.63/hr | +2.5% |
| 4 bedroom | $1,399 | $1,259 to $1,539 | $55,960 | $26.90/hr | +4.6% |
5 to 8 bedrooms (PropMetrics estimates)
HUD stops at four bedrooms. These add 15% of the four-bedroom rent per extra bedroom. It's our estimate, not a HUD number.
| Bedrooms | Estimated FMR | Payment standard |
|---|---|---|
| 5 bedroom Estimate | $1,609 | $1,448 to $1,770 |
| 6 bedroom Estimate | $1,819 | $1,637 to $2,001 |
| 7 bedroom Estimate | $2,029 | $1,826 to $2,232 |
| 8 bedroom Estimate | $2,238 | $2,014 to $2,462 |
Source: HUD Office of Policy Development and Research, FY 2026 Fair Market Rents. Rents include utilities. huduser.gov
Fair Market Rent is HUD's estimate of what a modest, decent unit rents for in an area, utilities included. It's set once a year and runs October to September. For FY 2026 that's October 1, 2025 through September 30, 2026. In Montgomery, that runs from $802 for a studio up to $1,399 for four bedrooms, all five rates in the table above.
Because Montgomery sits outside any HUD metro area, its rate is a county-wide figure built from local rents. One number covers every address in the county, Alamo included.
Among Indiana's 92 counties, Montgomery ranks 58th for two-bedroom FMR. That's about 4% below the state median of $1,009 and about 5% below the national median county at $1,018. About 38,018 people live here, 39th in the state.
Rates by ZIP code
Zoom in and the picture changes. HUD's Small Area FMRs put a two-bedroom at $960 in 47940 (Darlington) and $1,230 in 47933 (Crawfordsville), with the 11 ZIP codes in between. Housing authorities in HUD-designated metros use those ZIP rates instead of the county rate. Everywhere else the ZIP numbers show where rents actually sit, and the county rate stays the official standard.
What a voucher pays here
The voucher doesn't pay the FMR itself. It pays the payment standard. Housing authorities set it anywhere from 90% to 110% of FMR, which puts a two-bedroom standard in Montgomery somewhere between $869 and $1,063. The tenant pays roughly 30% of their income, the voucher covers the rest up to the standard, and the PHA won't approve a rent above what comparable unassisted units get.
$966 a month is affordable, by HUD's 30% rule, on an income of roughly $38,640 a year. Put another way, $19 an hour full time.
Worked example for a two-bedroom, assuming the rent equals the payment standard. Tenant pays 30% of monthly income, HUD's housing assistance payment covers the rest.
| Monthly household income | Tenant pays (30%) | HAP at 90% ($869) | HAP at 100% ($966) | HAP at 110% ($1,063) |
|---|---|---|---|---|
| $2,500 | $750 | $119 | $216 | $313 |
| $4,000 | $1,200 | $0 | $0 | $0 |
Rate history
The two-bedroom rate went up 3% from FY 2025 ($939) to FY 2026 ($966). Since FY 2020 it's up 28% in total, about 4.1% a year. The Indiana median moved up 2% over the same year.
| Year | Studio | 1 BR | 2 BR | 3 BR | 4 BR | 2BR change |
|---|---|---|---|---|---|---|
| FY 2020 | $501 | $575 | $757 | $975 | $1,025 | — |
| FY 2021 | $507 | $584 | $769 | $1,015 | $1,070 | +1.6% |
| FY 2022 | $520 | $570 | $745 | $1,010 | $1,151 | -3.1% |
| FY 2023 | $591 | $661 | $847 | $1,155 | $1,296 | +13.7% |
| FY 2024 | $600 | $684 | $863 | $1,176 | $1,279 | +1.9% |
| FY 2025 | $660 | $758 | $939 | $1,250 | $1,338 | +8.8% |
| FY 2026 | $802 | $807 | $966 | $1,281 | $1,399 | +2.9% |
| FY 2027 | $895 | $900 | $1,046 | $1,351 | $1,459 | +8.3% |
Nearby counties
Questions people ask
$966 a month for FY 2026, which runs October 1, 2025 through September 30, 2026. The other rates are $802 for a studio, $807 for one bedroom, $1,281 for three and $1,399 for four.
Tools for this county
Fair Market Rent lookup
Look up any ZIP code's Small Area FMR by bedroom count.
Section 8 rent calculator
Work out the payment standard and tenant share for a specific rent.
What is Fair Market Rent?
How HUD calculates FMR and what it means for landlords.
Rent affordability calculator
See what income a household needs for a given rent.
What does a rental in Montgomery actually go for?
HUD's number is one input. Search any address in Montgomery for a rent estimate built from nearby comps. 3 free searches, no card.
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