FY2027 Small Area FMR · Middlebury, IN
ZIP 46540 Fair Market Rent & Payment Standards
HUD's FY2027 Small Area Fair Market Rent for a two-bedroom home in ZIP code 46540 (Middlebury, IN) is $1,340 a month, up 7.2% from FY2026. That is 7% above the Elkhart-Goshen, IN area-wide FMR of $1,253.
Payment standard range, 2 bedrooms
Housing agencies may set voucher payment standards anywhere from 90% to 110% of the FMR without asking HUD.
FY2027 FY2026
Where 46540 sits in the Elkhart-Goshen, IN area
Of the 19 ZIP codes HUD lists for the area, 46540 has the 3rd highest two-bedroom Small Area FMR. Elkhart-Goshen, IN is not on HUD's list of mandatory Small Area FMR areas, so voucher payment standards here are normally based on the area-wide FMR of $1,253 for two bedrooms; an agency that opts in to Small Area FMRs would use $1,340 for this ZIP code instead.
ZIP code 46540 crosses more than one HUD area. HUD also lists it under LaGrange County, IN (same figures). The figure that applies depends on which side of the line the home is.
All unit sizes
| Unit | FY2027 SAFMR | Payment standard range | Area-wide FMR | FY2026 SAFMR |
|---|---|---|---|---|
| Studio | $1,070 | $963 – $1,177 | $1,008 | $1,020 |
| 1 bedroom | $1,110 | $999 – $1,221 | $1,048 | $1,040 |
| 2 bedrooms | $1,340 | $1,206 – $1,474 | $1,253 | $1,250 |
| 3 bedrooms | $1,760 | $1,584 – $1,936 | $1,653 | $1,630 |
| 4 bedrooms | $1,870 | $1,683 – $2,057 | $1,752 | $1,670 |
A household renting a two-bedroom home at the Small Area FMR of $1,340 needs about $53,600 a year to keep housing costs at 30% of income. The area median family income is $89,900 and the 80% low-income limit for four people is $71,900. ZIP code 46540 lies mainly in Elkhart County and LaGrange County. See the Elkhart-Goshen, IN county page for the full income limits table and the household check.
Nearby ZIP codes
Questions
What is the Fair Market Rent for ZIP code 46540?
HUD's FY2027 Small Area Fair Market Rents for 46540 are $1,070 (studio), $1,110 (1 BR), $1,340 (2 BR), $1,760 (3 BR) and $1,870 (4 BR) a month.
What is the Section 8 payment standard in 46540?
Housing agencies set payment standards between 90% and 110% of the applicable FMR without HUD approval. For a two-bedroom unit in 46540 that range is $1,206 to $1,474 if the agency uses Small Area FMRs. Ask your housing agency for its actual payment standard.
Which income limits apply in 46540?
The FY2026 income limits of the Elkhart-Goshen, IN area apply: median family income $89,900, low-income (80%) limit $71,900 for a family of four.