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 | $810 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,300 | $228,337 | 0.57% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 47858, located in Sullivan County, Indiana, does not work in favor of landlords based on the HUD Fair Market Rent (FMR) of $910 for the fiscal year 2024. The FMR is the maximum amount that low-income families should pay for housing, but it does not reflect the actual market rent which is currently unavailable. This lack of market rent data makes it challenging to determine if the FMR aligns with what tenants can afford in the local rental market.
Acquisition in this area is relatively affordable, with a median home value of $211,808. However, without specific data on the number of days on the market (DOM) and the percentage of homes needing price cuts, it's difficult to gauge the exact ease or difficulty of acquiring properties. These metrics would provide insight into how quickly and at what price point homes are selling, which is crucial for understanding the local real estate market dynamics.
Tenant demand in ZIP 47858 is strong, given its population of 946 residents and a significant 56.5% renter share. This indicates that over half of the residents are looking for rental housing, which could support a robust rental market. However, the success of tenant acquisition also depends on the availability of rental units and the competition among landlords.
In summary, while the acquisition cost appears reasonable with the median home value at $211,808 and there is notable tenant demand with 56.5% of the population renting, the rent math is skewed against landlords due to the low FMR of $910. Landlords must be cautious about setting rents below market levels, which could impact profitability. To succeed in this market, landlords should focus on managing costs and ensuring their properties offer good value to attract tenants willing to pay close to or above the FMR.
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.