Location: Sullivan County, IN | Metro: Terre Haute, IN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $960 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,880 |
| 5 Bedrooms | $2,181 |
| 6 Bedrooms | $2,443 |
| 7 Bedrooms | $2,638 |
| 8 Bedrooms | $2,770 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP 47866 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $980. However, the latest data suggests that the average market rent in this area is $749 for 3+ bedroom units. This means the FMR exceeds the market rent by $231, or approximately 30.8%.
The disparity between FMR and market rent makes ZIP 47866 an attractive location for landlords and small-portfolio investors who wish to capitalize on the yield potential offered by housing voucher tenants. Despite the lower market rent, landlords can charge up to the FMR of $980, which is significantly higher than the typical market rate. This allows them to generate a higher rental income while still providing affordable housing options to tenants.
In the broader context of ZIP 47866, only 3.8% of the population are renters, indicating a relatively low demand for rental properties. The median home value is $195,660, and the median income is $81,681. These figures suggest that the area has a stable economic environment, but the low rental demand may impact the overall occupancy rates and competition among landlords.
To summarize, the gap between the FMR and the market rent in ZIP 47866 presents a unique opportunity for landlords to benefit financially from Section 8 tenants. The ability to charge closer to the FMR of $980, rather than the lower market rate, can result in a more favorable yield. However, investors should also consider the limited rental market and the potential challenges associated with attracting and retaining tenants in this area.
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.