For FY 2027, HUD's Small Area Fair Market Rent for a two-bedroom unit in Shelbyville, IN is $1,280 a month. That is up 3.2% from $1,240 in FY 2026. Shelbyville is in the Indianapolis-Carmel, IN HUD Metro FMR Area, where HUD requires housing authorities to set voucher payment standards by ZIP code using Small Area FMRs. The median county two-bedroom FMR in Indiana is $1,086, so Shelbyville is 18% above it.
FY 2027 rent by bedroom
FY 2027 fair market rent by bedroom for Shelbyville, IN
Bedrooms
FY 2026
FY 2027
Change
90–110% range
Studio
$940
$990
+5.3%
$891–$1,089
1BR
$1,070
$1,110
+3.7%
$999–$1,221
2BR
$1,240
$1,280
+3.2%
$1,152–$1,408
3BR
$1,610
$1,660
+3.1%
$1,494–$1,826
4BR
$1,970
$2,020
+2.5%
$1,818–$2,222
Fair market rent history, FY 2023–2027
Fair market rent by fiscal year for Shelbyville, IN
Fiscal year
Studio
1BR
2BR
3BR
4BR
FY 2027
$990
$1,110
$1,280
$1,660
$2,020
FY 2026
$940
$1,070
$1,240
$1,610
$1,970
FY 2025
$890
$1,040
$1,220
$1,590
$1,920
FY 2024
$840
$980
$1,160
$1,510
$1,830
FY 2023
$690
$800
$950
$1,250
$1,490
Questions about Shelbyville, IN rents
How much will Section 8 pay for a two-bedroom in Shelbyville, IN?
Housing authorities set voucher payment standards, normally between 90% and 110% of the FMR. With a two-bedroom FMR of $1,280, that basic range is $1,152 to $1,408 a month. The voucher pays the lower of the payment standard or the gross rent, minus the tenant's share, which is usually about 30% of adjusted monthly income. Confirm the local housing authority's current schedule before underwriting.
Which HUD fair market rent area is Shelbyville, IN in?
Shelbyville, IN is in the Indianapolis-Carmel, IN HUD Metro FMR Area. HUD requires Small Area FMRs in this area, so payment standards are set by ZIP code.
How much did fair market rent change in Shelbyville, IN for FY 2027?
The two-bedroom FMR rose 3.2%, from $1,240 in FY 2026 to $1,280 in FY 2027. Since FY 2023 it has risen 34.7%.
When do FY 2027 fair market rents take effect?
HUD's FY 2027 fair market rents took effect on October 1, 2026. When FMRs change, housing authorities generally have up to three months to bring payment standards back within 90% to 110% of the new FMR.
Source: HUD FY 2027 Small Area Fair Market Rents and area FMRs. Payment-standard ranges are 90% to 110% of FMR, HUD's basic range, not a housing authority's published schedule. How payment standards are set