Location: Parke 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 | $820 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $820 | $100,098 | 0.82% | C |
| 2BR | $1,070 | $134,841 | 0.79% | D |
| 3BR | $1,270 | $209,194 | 0.61% | D |
| 4BR | $1,480 | $283,333 | 0.52% | F |
U.S. Census Bureau data (2024)
The ZIP code 47805 is located in Terre Haute, Indiana, and encompasses a neighborhood with a population of 12,619 residents. Among these inhabitants, 17.9% are renters, indicating a relatively modest rental market presence. The median household income in this area stands at $72,411, reflecting a middle-class community where many families can afford homeownership, as evidenced by the median home value of $194,073.
From an investment perspective, the Federal Market Rent (FMR) for ZIP 47805 for fiscal year 2024 is set at $920, while the market rent, measured by Zillow's Observed Rent Index (ZORI), is currently at $850. This suggests that properties participating in the Section 8 program can command higher rents compared to the general market, offering a potential advantage for landlords who are willing to comply with the program's requirements.
Given the characteristics of ZIP 47805, it is well-suited for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the neighborhood offers a stable environment with a manageable number of renters, ensuring a steady stream of income through the Section 8 program. The difference between the FMR and market rent provides a cushion for those who might prefer the simplicity and predictability of voucher-assisted tenancy.
On the other hand, value-add buyers can leverage the slightly lower market rent to improve properties and increase their appeal, potentially capturing the higher FMR rate once renovations are complete. This approach requires more active management but could yield higher returns over time as improved properties attract tenants willing to pay closer to the FMR.
In conclusion, ZIP 47805 presents a balanced opportunity for Section 8 investors. Whether pursuing a passive strategy or aiming to actively enhance property values, the economic landscape supports both approaches, making it a viable choice for various types of real estate investments in Terre Haute, IN.
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.