Location: Putnam 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 | $860 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $870 | $97,717 | 0.89% | C |
| 2BR | $1,130 | $131,082 | 0.86% | C |
| 3BR | $1,350 | $209,283 | 0.65% | D |
| 4BR | $1,560 | $285,824 | 0.55% | F |
| 5BR | $1,810 | $300,901 | 0.6% | D |
U.S. Census Bureau data (2024)
ZIP 47834, located in Brazil, IN, within the Putnam County, IN metro area, serves as an ideal cash-flow anchor for a Section 8 portfolio strategy. The Federal Market Rent (FMR) for FY 2024 is set at $940, which exceeds the current market rent of $896. This $44 positive spread ensures that properties in this ZIP code will generate reliable rental income, even when rented through the Section 8 program.
The median home value in ZIP 47834 is $186,816, which is relatively low compared to other areas. This makes it easier for landlords to acquire properties without significant capital investment, thus maximizing their cash-on-cash returns. Additionally, the low market rent suggests that tenants will find the housing affordable, reducing the risk of non-payment and increasing tenant stability.
While ZIP 47834 does not offer substantial appreciation potential, with only a 0.2% price-cut share and a day DOM (Days on Market) that is not applicable due to the stable housing market, it provides a solid foundation for steady cash flow. The 19.9% renter share indicates a moderate demand for rental properties, ensuring that there is a sufficient pool of potential tenants. However, the primary advantage lies in the positive spread between the FMR and market rent, which guarantees that landlords can achieve their cash flow goals.
The median income of $68,578 in ZIP 47834 supports the notion that this area is suitable for a cash-flow anchor. Landlords can expect tenants to have stable incomes, which reduces the likelihood of eviction and maintains a consistent cash flow. In conclusion, ZIP 47834 is best categorized as a cash-flow anchor within a Section 8 portfolio strategy, given its positive FMR-market rent spread and the overall economic conditions that support stable tenancy and rental income.
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.