Location: Terre Haute, IN | Metro: Terre Haute, IN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $950 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,710 |
| 5 Bedrooms | $1,984 |
| 6 Bedrooms | $2,222 |
| 7 Bedrooms | $2,400 |
| 8 Bedrooms | $2,520 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 47871, located in the Terre Haute, IN HUD Metro FMR Area, reveals several key points that are crucial for landlords and small-portfolio investors. Firstly, the rent math does not work in favor of landlords. The Fair Market Rent (FMR) set at $1170 for the fiscal year 2024 is significantly higher than the market rent reported by the Census ACS, which stands at $864. This discrepancy indicates that landlords may struggle to charge the FMR due to lower market expectations.
Secondly, the acquisition of properties in this area is not particularly affordable. The median home value is not available, making it difficult to assess the typical cost of property purchases. Additionally, the days on market (DOM) and the percentage of homes that require price cuts before selling are also not available, suggesting that there might be challenges in acquiring properties at favorable prices. Without these specific metrics, it's challenging to make an informed decision about the affordability of property acquisitions.
Lastly, there is moderate tenant demand in ZIP 47871. With a population of 441, the area has a 25.3% renter share, indicating that nearly one-quarter of the residents are potential tenants. However, the relatively low population size means that the pool of potential renters is limited, which could affect the ability to quickly fill vacancies.
In conclusion, while there is a reasonable demand for rental housing in ZIP 47871, the high FMR compared to the actual market rent suggests that landlords will likely need to adjust their pricing to remain competitive. The lack of data on median home values, DOM, and price-cut shares complicates the assessment of acquisition costs but implies potential difficulties in purchasing properties at affordable rates. Given these factors, investing in this ZIP code requires careful consideration and possibly a strategic approach to pricing and acquisition tactics.
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.