Location: Terre Haute, IN | Metro: Terre Haute, IN HUD Metro FMR Area
| 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 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 47857 are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $940 per month for fiscal year 2024. This figure represents the maximum amount that a landlord can receive from the housing authority for a two-bedroom unit in this specific ZIP code. It's important to note that the local market rent for a similar unit is significantly lower at $623 per month, according to the latest Census ACS data.
A Section 8 voucher is designed to cover the difference between the market rent and 30% of the tenant's income. The tenant is responsible for paying their portion of the rent, plus any utility allowances. For instance, if a tenant's monthly income is $1,500, they would pay 30% of that, which is $450, towards the rent. The remaining balance is covered by the housing authority up to the SAFMR limit of $940.
In ZIP 47857, the housing authority also provides an additional utility allowance, typically around $150 per month. Therefore, the total reimbursement a landlord might receive is the sum of the tenant's contribution and the utility allowance, capped at the SAFMR. If the market rent is $623 and the tenant pays $450, the housing authority would cover the rest, up to $940 minus the tenant's share, which is $490 in this case. However, since the market rent is only $623, the actual reimbursement would be $623 minus the tenant's $450 contribution, resulting in $173 from the housing authority, plus the $150 utility allowance, totaling $323 from the housing authority.
This scenario leaves a landlord with a total income of $770 per month ($450 from the tenant and $323 from the housing authority) for a two-bedroom apartment renting at market price. Given the SAFMR is $940, there is a surplus of $270 per month for landlords who rent at the market rate of $623. This surplus is the difference between the SAFMR and the actual market rent, plus the utility allowance.
To summarize, landlords in ZIP 47857 who accept Section 8 vouchers for a two-bedroom apartment renting at $623 will receive a total of $770 per month, consisting of $450 from the tenant and $323 from the housing authority, including utilities. This arrangement leaves a surplus of $270 per month for landlords renting at the local market rate, making it financially viable despite the involvement of government subsidies.
Data Sources: FMR data from HUD (2027). 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.