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 | $840 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,100 | $145,665 | 0.76% | D |
| 3BR | $1,330 | $218,498 | 0.61% | D |
U.S. Census Bureau data (2024)
The ZIP code 47854, located in Cayuga, Indiana, stands out within Vermillion County due to its unique demographic and economic characteristics. With a total population of 902 residents, only 10.4% of whom rent their homes, the area is predominantly occupied by homeowners. The median income in ZIP 47854 is $86,509, indicating a relatively affluent community compared to national averages. Additionally, the median home value of $202,223 suggests that the housing stock is moderately priced and likely includes a mix of newer and older properties.
When it comes to Section 8 vouchers, the Fair Market Rent (FMR) for the zip code for fiscal year 2024 is set at $950. This figure is critical for understanding the potential rental market dynamics in Cayuga. However, the absence of market-specific data makes it challenging to directly compare the FMR with local rental prices. Despite this limitation, the low percentage of renters in the area implies that there may be limited demand for rental properties, including those utilizing Section 8 vouchers. Landlords should consider the broader county and state rental trends to gauge how the FMR might influence local rental prices.
The data signature for ZIP 47854 reads as stable. The median income and home values suggest a consistent financial environment where most residents own their homes and have the means to maintain them. This stability is further reinforced by the lack of significant fluctuations in the demographic makeup of the area. For small-portfolio investors and landlords, this stability offers a predictable market with fewer risks associated with sudden changes in tenant behavior or property values. However, the low rental rate also indicates that the market may not be as dynamic or fast-growing as other areas with higher percentages of renters.
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.