Location: Sullivan 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 | $1,040 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,370 |
| 3 Bedrooms | $1,730 |
| 4 Bedrooms | $2,210 |
| 5 Bedrooms | $2,564 |
| 6 Bedrooms | $2,872 |
| 7 Bedrooms | $3,102 |
| 8 Bedrooms | $3,257 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,370 | $113,140 | 1.21% | A |
| 3BR | $1,730 | $178,218 | 0.97% | C |
| 4BR | $2,210 | $222,285 | 0.99% | C |
U.S. Census Bureau data (2024)
ZIP code 47850, located in Farmersburg, IN, is part of the Sullivan County, IN HUD Metro FMR Area. The Fair Market Rent (FMR) for ZIP 47850 in fiscal year 2024 is set at $1010. This figure represents the maximum amount that a household participating in the Section 8 Housing Choice Voucher program can pay for rent. In comparison, the actual market rent for the area is $808, indicating that the FMR is higher than what the market currently demands.
The median home value in ZIP 47850 is $151,815, which is relatively low compared to other ZIP codes within the Sullivan County, IN HUD Metro FMR Area. This suggests that 47850 could be considered a value pocket within its metro, offering lower-cost housing options to both renters and homeowners. A value pocket typically has lower property values and rents, making it attractive for those seeking affordable living solutions.
The renter share in ZIP 47850 stands at 24.8%, which is a significant portion of the population but not unusually high when compared to typical ZIP codes in the area. However, the combination of a high renter share and below-average home values can signal a potential sweet spot for Section 8 investments. Landlords in this ZIP code may find opportunities to attract voucher holders due to the affordability of rental properties relative to the FMR.
To further contextualize these figures, let's examine how they stack up against other ZIP codes in the Sullivan County, IN HUD Metro FMR Area. A high FMR with lower market rents indicates a favorable environment for landlords who can charge closer to the FMR without exceeding what tenants can afford through their vouchers. Additionally, the below-average home values suggest that this ZIP code offers cost-effective investment opportunities, particularly for those interested in Section 8 properties.
In summary, ZIP 47850 appears to be a value pocket within the Sullivan County, IN HUD Metro FMR Area, characterized by lower home values and market rents, alongside a notable renter share. These factors make it an appealing location for Section 8 investments, as it aligns well with the financial assistance provided by the program while maintaining competitive pricing for both landlords and tenants.
For a detailed comparison with other ZIP codes in the area, consider the following data points:
These figures provide a clear snapshot of the rental and housing landscape in ZIP 47850, highlighting its potential as a strategic investment location within the broader Sullivan County, IN HUD Metro FMR Area.
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.