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 | $910 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $920 | $53,471 | 1.72% | A+ |
| 2BR | $1,190 | $64,620 | 1.84% | A+ |
| 3BR | $1,420 | $88,585 | 1.6% | A+ |
| 4BR | $1,650 | $114,215 | 1.44% | A |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 47807, located in Terre Haute, Indiana, reveals several key points that can inform investment decisions. The HUD Fair Market Rent (FMR) for this area is set at $960 for fiscal year 2024, which is significantly higher than the market rent as indicated by ZORI (Zillow Observed Rental Index), currently at $765. This difference suggests that voucher tenants will generally cashflow at the HUD FMR rate, providing a positive financial outlook for landlords who can secure these tenants.
To further understand the rental market dynamics, consider the median home value in the area, which stands at $73,099. Using this figure, we can calculate a rent-to-price ratio, indicating how affordable renting is compared to buying. With a monthly rent of $765, the annual rent would be approximately $9,180, leading to an annual rent-to-price ratio of about 12.5%. This ratio suggests that the rental market is relatively stable and competitive, given the low median home values.
The data does not provide a median Days on Market (DOM) or a percentage share of homes making price cuts, both of which are typically important metrics for understanding the rent-versus-buy dynamics. However, given the significant gap between the HUD FMR and the actual market rent, it's evident that the rental market is strong and likely to continue attracting tenants, especially those with vouchers.
In conclusion, the strongest angle for Section 8 investors in ZIP 47807 is cashflow. The higher HUD FMR compared to the market rent ensures that landlords can achieve positive cash flow when securing voucher tenants, making this area particularly attractive for investors focused on generating steady income from their properties.
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.