Location: Putnam County, IN | Metro: Terre Haute, IN HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,090 | $231,876 | 0.47% | F |
| 3BR | $1,390 | $329,483 | 0.42% | F |
U.S. Census Bureau data (2024)
The Section 8 housing situation in Reelsville, IN, zip code 46171, highlights a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1020, while the current market rent remains unspecified. This ambiguity underscores the importance of understanding the implications of such a scenario.
In Reelsville, only 9.9% of residents are renters, indicating a primarily owner-occupied market. The median home value stands at $297,685, reflecting a stable residential environment. However, the median household income is $83,607, suggesting that a portion of the population might rely on assistance like housing vouchers to afford living spaces.
Given that the FMR exceeds the unspecified market rent, landlords and small-portfolio investors should consider the benefits of accepting voucher tenants. Voucher holders provide a steady stream of income, reducing the risk of vacancy and ensuring consistent cash flow. Moreover, the federal government covers the difference between the tenant's contribution and the FMR, making these units a yield play. The government subsidy guarantees a fixed income, which can be more predictable than relying on open-market rents that fluctuate with market conditions.
Accepting Section 8 tenants can also offer a competitive edge in a market where only a small percentage of residents are renters. Landlords can attract tenants who might otherwise struggle to find affordable housing, thereby increasing occupancy rates and maintaining a steady revenue stream. However, it's crucial to understand the administrative requirements and potential challenges associated with managing voucher tenants, including compliance with HUD regulations and the need for regular inspections.
In summary, the gap between the FMR and the market rent in Reelsville, IN, presents an opportunity for landlords and investors to leverage Section 8 vouchers. This strategy can enhance yields and ensure a stable tenant base, aligning well with the local economic and demographic context.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.