Location: Terre Haute, 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 | $900 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $910 | $90,726 | 1% | B |
| 2BR | $1,180 | $128,448 | 0.92% | C |
| 3BR | $1,410 | $208,128 | 0.68% | D |
| 4BR | $1,630 | $309,586 | 0.53% | F |
| 5BR | $1,891 | $424,356 | 0.45% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering Terre Haute, IN (ZIP 47802) might raise several concerns regarding the feasibility of investing in Section 8 properties. Let's address these points directly using the available data.
Objection 1: Will FMR $970 (zip FY 2024) cover the mortgage on a $191,965 home?
The Fair Market Rent (FMR) for ZIP 47802 is set at $970 for fiscal year 2024. To determine if this amount will sufficiently cover the mortgage, we need to consider the typical mortgage payment on a home valued at $191,965. Assuming a standard 30-year fixed-rate mortgage at an interest rate of 5%, the monthly mortgage payment would be approximately $1,037. This means that the FMR does not fully cover the mortgage payment, leaving a shortfall of $67 per month. Investors must account for this gap through other income sources or by reducing their mortgage payments through lower interest rates or down payments.
Objection 2: Is there enough renter demand at 41.0%?
The percentage of renters in ZIP 47802 is 41.0%. While this figure indicates a significant portion of the population rents rather than owns, it does not provide a complete picture of the demand for rental housing. The data suggests that there is a moderate level of demand, but to fully assess the viability, one would need to look at vacancy rates, the number of units available, and the average duration of tenancy. Without this additional context, it's difficult to definitively state whether the demand is sufficient, but the 41.0% figure does suggest a reasonable base of potential tenants.
Objection 3: Will vouchers keep pace with $1,018 market rents?
The market rent for a two-bedroom apartment in ZIP 47802 is $1,018. Given that the Housing Choice Voucher Program aims to cover 30% of the market rent, the voucher amount should be around $305.40. However, the actual voucher amount can vary based on the tenant's income and the local housing authority's policies. If the voucher program does not adjust its payments to match the increasing market rents, landlords may face challenges in covering operational costs. It's crucial for investors to monitor any changes in voucher policy and ensure they align with the rising cost of living and market rents.
In conclusion, while the data provides some clarity, it also highlights areas where further investigation is necessary. The FMR does not fully cover the mortgage on a median-priced home, indicating a need for careful financial planning. The renter demand is present but requires deeper analysis to confirm its adequacy. Lastly, the alignment between voucher amounts and market rents remains a concern that needs ongoing attention.
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.