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 ZIP code 47876, located in Indiana, presents an interesting scenario for both renters and landlords. The median income data is currently unavailable, making it challenging to assess the financial health of the typical household. However, with the market rate also listed as N/A, it is equally difficult to determine how well local incomes align with rental costs.
Despite these data gaps, we can still evaluate the situation using the available voucher payment standard. In fiscal year 2024, the Fair Market Rent (FMR) for ZIP 47876 is set at $870. This figure represents the maximum amount that housing choice vouchers will pay landlords for a unit. Given that 100.0% of the 433 residents are renters, the competition among landlords is likely to be fierce, especially for those who accept vouchers.
The affordability gap becomes apparent when considering the reliance on voucher programs. Since there is no median income data, we cannot directly calculate the percentage of income that goes towards rent. However, if we assume that the majority of renters rely heavily on voucher assistance, then landlords who accept vouchers will have a stable tenant base but will face lower rental income compared to market rates. On the other hand, landlords who opt for cash-paying tenants might see higher rents, assuming that some portion of the population can afford to pay above the FMR.
For landlords evaluating their strategy between accepting vouchers versus seeking cash-paying tenants, the key takeaway is the necessity to balance stability and income. Accepting vouchers guarantees consistent payments and reduces the risk of vacancy, which is crucial in a fully rented market. However, focusing on cash-paying tenants could potentially yield higher returns, contingent upon the ability of local households to cover the unspecified market rate.
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.