Location: Terre Haute, IN | Metro: Owen County, 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 | $830 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,290 | $258,453 | 0.5% | F |
U.S. Census Bureau data (2024)
The ZIP code 47833 is situated in a small, rural neighborhood with a total population of 836 residents. Approximately 20.1% of these residents are renters, indicating a modest demand for rental properties in the area. The median household income stands at $67,679, which is relatively stable but not exceptionally high. This economic profile suggests that many residents may be looking for affordable housing options.
The median home value in ZIP 47833 is $233,180, reflecting the overall affordability of the region. For Section 8 investors, the key metric is the Fair Market Rent (FMR), which for the fiscal year 2024 is set at $950. Given the lack of specific market rent data, it's reasonable to assume that the FMR closely aligns with the local rental rates, making it an accurate benchmark for potential returns on investment.
When considering whether ZIP 47833 suits a hands-off voucher operator or a hands-on value-add buyer, several factors come into play. The low percentage of renters and the modest median income suggest that there might be limited demand for higher-end rental properties. Therefore, a hands-off approach focusing on maintaining a portfolio of affordable housing units could be more suitable. Landlords should ensure their properties meet the necessary standards to qualify for the Section 8 program, as this will be crucial for attracting tenants who benefit from the vouchers.
Investors interested in a more active role may find opportunities to improve properties and increase their value, but such efforts must be carefully balanced against the local rental market dynamics. Given the limited data on market rents, the FMR serves as a reliable guide for setting competitive rental prices that align with the financial assistance available through the Section 8 program.
In conclusion, ZIP 47833 presents itself as a straightforward investment opportunity for those seeking a stable, hands-off operation focused on providing affordable housing. The economic indicators and the FMR of $950 support this strategy, ensuring that the investment aligns with the needs and financial capabilities of the local tenant base.
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.