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 | $930 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $940 | $89,675 | 1.05% | B |
| 2BR | $1,220 | $129,019 | 0.95% | C |
| 3BR | $1,450 | $208,056 | 0.7% | D |
| 4BR | $1,690 | $295,902 | 0.57% | F |
| 5BR | $1,960 | $346,522 | 0.57% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 47803 in Terre Haute, Indiana, might raise several valid concerns regarding the feasibility of investing in the area through the Section 8 program. Here are the most pertinent questions, along with the data to address them.
Will FMR $1080 (zip FY 2024) cover the mortgage on a $174,205 home?
The Fair Market Rent (FMR) for ZIP 47803 in fiscal year 2024 is set at $1080. To determine if this amount will sufficiently cover the mortgage on a home valued at $174,205, we must consider the interest rate and loan terms. Assuming a typical 30-year fixed-rate mortgage at an average rate of 6%, the monthly payment would be approximately $1,050. This figure is based on the principal and interest only, not including property taxes, insurance, and maintenance costs. The FMR of $1080 would thus cover the mortgage payment, but it's important to note that additional expenses would need to be managed separately.
Is there enough renter demand at 30.9%?
The percentage of renter-occupied housing units in ZIP 47803 is 30.9%. This indicates that nearly one-third of the homes are rented out, suggesting a moderate level of demand. However, the question of whether this demand is sufficient depends on the overall vacancy rate and the competition from other rental properties. While 30.9% shows a steady base of renters, it does not guarantee a high occupancy rate. Investors should look into local vacancy rates and the number of available rental units to better assess the potential for maintaining full occupancy.
Will vouchers keep pace with $1,408 market rents?
The market rent in ZIP 47803 is reported to be $1,408 per month, which is higher than the FMR of $1080. This discrepancy raises concerns about whether the Section 8 voucher program will cover the difference. Historically, voucher amounts have lagged behind market rents, leaving landlords to absorb the shortfall. In ZIP 47803, the gap between the FMR and the market rent is $328. Given this significant difference, landlords may face challenges in covering the remaining cost unless they can find tenants willing to pay the extra amount or they can secure other subsidies. It's crucial to monitor local housing authority policies and federal guidelines for any adjustments to voucher amounts.
The data provides a clear picture of the financial landscape in ZIP 47803, but it also highlights areas where further investigation is necessary to ensure a successful investment strategy.
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.