Location: Terre Haute, IN | Metro: Owen County, 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 | $810 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $162,423 | 0.62% | D |
| 3BR | $1,240 | $248,033 | 0.5% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 47427, Coal City, IN, provides insight into the potential returns for landlords and small-portfolio investors. To begin, let's examine the Fair Market Rent (FMR) and market rent figures for a two-bedroom apartment.
The annualized FMR for a two-bedroom apartment in ZIP 47427 is $860 per month, based on FY 2024 data. Using this figure, the implied gross yield would be calculated as follows:
$860 * 12 months = $10,320 annual rent
With a median home value of $206,502, the gross yield using the FMR is:
$10,320 / $206,502 = 0.05 or 5%
Next, we'll consider the market rent, which stands at $626 per month according to Census ACS data. The implied gross yield for this scenario is:
$626 * 12 months = $7,512 annual rent
$7,512 / $206,502 = 0.036 or 3.6%
The gross yield comparison between the FMR and market rent scenarios reveals that the FMR yields a higher return at 5%, compared to the market rent yield of 3.6%. However, it's important to note that the actual yield will depend on the specific property and its operating expenses.
Given the 9.3% renter density in Coal City, it's reasonable to expect that the majority of residents prefer homeownership over renting. This suggests that the market rent scenario is more realistic, as it reflects the actual rental rates in the area. The N/A-day DOM indicates that there is no available data on the days on market for rentals, which could mean that properties are either rented quickly or there is limited turnover in the rental market.
In conclusion, while the FMR offers a higher gross yield, the market rent provides a more accurate representation of potential returns for landlords and small-portfolio investors in ZIP 47427. Investors should use these figures as a starting point for their own calculations, taking into account individual property conditions and expenses.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.