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 | $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 | $76,383 | 1.07% | B |
| 2BR | $1,070 | $103,834 | 1.03% | B |
| 3BR | $1,270 | $147,516 | 0.86% | C |
| 4BR | $1,480 | $219,096 | 0.68% | D |
U.S. Census Bureau data (2024)
In ZIP code 47842, which encompasses Clinton, IN, in Vermillion County, understanding the economics of Section 8 housing is crucial for landlords and small-portfolio investors. For fiscal year 2024, the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $880. This figure represents the maximum amount that the housing authority will pay on behalf of eligible tenants. However, it's important to note that the local market rent for a similar unit is lower, at $742, according to the Census ACS.
The SAFMR of $880 is not necessarily what you'll receive in full. A Section 8 voucher payment consists of two parts: the tenant contribution and the subsidy from the housing authority. Tenants typically contribute 30% of their adjusted income toward rent. If a tenant's share is below the utility allowance, the housing authority adjusts the payment to ensure the total rent plus utilities does not exceed 40% of the tenant's income. In ZIP 47842, the utility allowance for a two-bedroom unit is $290.
To walk through an example, let's assume a tenant contributes $200 towards rent. The housing authority would then cover the remaining $680 of the $880 SAFMR, ensuring the total rent and utilities do not exceed $890 ($200 + $690). If the local market rent is $742, and the tenant's contribution is $200, the housing authority would pay $542, leaving a surplus of $52 above the market rent.
If the tenant's contribution were higher, say $300, the housing authority would pay $580, resulting in a total of $880. This would leave a surplus of $138 over the local market rent of $742. Conversely, if the tenant's contribution is very low, such as $100, the housing authority would pay $780, leading to a surplus of $48.
The typical reimbursement gap or surplus for a two-bedroom unit in ZIP 47842 can be summarized as follows:
This means landlords can expect a surplus when renting out a two-bedroom unit under Section 8, given the current SAFMR and market conditions. The surplus ranges from approximately $52 to $138, depending on the tenant's contribution. Landlords should be aware of these dynamics to make informed decisions about accepting Section 8 vouchers.
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.