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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $940 | $69,838 | 1.35% | A |
| 2BR | $1,220 | $93,640 | 1.3% | A |
| 3BR | $1,450 | $124,066 | 1.17% | B |
| 4BR | $1,690 | $154,431 | 1.09% | B |
U.S. Census Bureau data (2024)
In Terre Haute, Indiana (ZIP 47804), the real estate market presents a unique setup for landlords and small-portfolio investors. The median home value stands at $101,357, indicating a relatively affordable market that could attract first-time buyers and investors looking for entry-level properties. However, the fact that only 0.3% of listings have reduced their prices suggests that sellers are maintaining firm pricing strategies, which can be interpreted as a sign of confidence in the local housing market. This stability in asking prices, combined with the lack of available data on the median days on market (DOM), implies that homes are likely selling quickly, further supporting the idea that there is strong demand relative to supply.
The rental market in ZIP 47804 also offers insights into the potential for income generation. The Fair Market Rent (FMR) for the area is projected to be $970 in fiscal year 2024, while the current market rent, as measured by ZORI (Zillow Observed Rent Index), is $809. This gap between the FMR and the actual market rent suggests that there is room for rental rates to rise, aligning more closely with the government's fair market assessment. Landlords and investors who can offer well-maintained properties at slightly above-market rents may find themselves in a favorable position to capitalize on this trend.
For long-term investors, the setup in ZIP 47804 points to a realistic appreciation thesis. Given the low median home value and the stable pricing environment, it is reasonable to expect gradual appreciation in property values over the next 12 to 24 months. The combination of steady home values and rising rental rates indicates that the overall cost of homeownership, including both purchase price and financing costs, will likely remain attractive to buyers. This scenario supports the notion that holding onto properties in Terre Haute can lead to modest gains in equity over time, making it a viable option for those seeking long-term investment opportunities.
However, it is important to note that the appreciation thesis is not robust due to the limited data on DOM and the small percentage of price reductions. While the current conditions suggest a positive outlook, they do not guarantee significant capital appreciation. Instead, the focus should be on the steady income generation through rentals and the potential for gradual increases in property value as the market continues to evolve.
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.