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 | $780 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $109,161 | 0.93% | C |
| 3BR | $1,210 | $138,613 | 0.87% | C |
U.S. Census Bureau data (2024)
To integrate ZIP 47847 into a Section 8 portfolio strategy, consider it primarily as a cash-flow anchor. The Fair Market Rent (FMR) for ZIP 47847 in fiscal year 2024 is set at $860, while the average market rent is only $643. This creates a significant positive spread of $217 per unit, ensuring that properties in this ZIP code can generate higher rental income compared to the local market rates when leased through the Section 8 program.
The median home value in ZIP 47847 is $137,134, which is relatively low. This suggests that the area is affordable for first-time homebuyers and low-income families, making it a suitable location for Section 8 housing. Landlords and small-portfolio investors should focus on the financial stability this ZIP code offers, particularly due to the guaranteed rental income from the government's Housing Choice Voucher program.
The ZIP code does not present itself as an appreciation play since there is no specific percentage given for price-cut share or days on market (DOM). These metrics would be essential for evaluating whether property values are likely to increase over time, but the available data does not support such an analysis.
However, ZIP 47847 can serve as a diversifier within a broader investment strategy. With a renter share of 20.3%, there is a notable portion of the population that relies on rental housing. Additionally, the median income of $53,924 indicates that many residents are eligible for the Section 8 program, thus creating a stable demand for subsidized rentals.
In summary, ZIP 47847 is best positioned as a cash-flow anchor due to the substantial difference between the FMR and market rent. This ZIP code provides a reliable source of income for landlords and investors who participate in the Section 8 program, while also offering some diversification benefits within a larger portfolio strategy.
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.