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 | $780 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $114,520 | 0.88% | C |
| 3BR | $1,310 | $189,512 | 0.69% | D |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP 47879, Indiana, suggests a stable environment for landlords and small-portfolio investors over the next 12 to 24 months. The median home value stands at $156,738, indicating that the area remains affordable for many potential buyers and renters. Despite the lack of specific percentages for listings being reduced and the median days on market (DOM), the overall stability in home values points towards a balanced market where neither sellers nor buyers have significant leverage.
On the rental side, the Fair Market Rent (FMR) for ZIP 47879 is set at $930 for fiscal year 2024, compared to the current market rent of $762 according to Census ACS data. This discrepancy highlights an opportunity for landlords to adjust their rents closer to the FMR without risking vacancy rates, given the relatively low cost of homeownership in the area. The higher FMR suggests that the rental market can support modest rent increases, which could lead to improved cash flows for property owners.
Long-term investors should consider the implications of the current pricing dynamics. With the median home value remaining steady and the potential for rental income to rise towards the FMR, there is a realistic appreciation thesis for those who hold properties over the coming years. As the rental market strengthens and potentially drives up demand for housing, this could translate into increased property values, particularly if local economic conditions improve or if there is a surge in population growth.
However, it's important to note that the lack of detailed data on listing reductions and DOM could indicate a slower-moving market. In such a scenario, appreciation might be gradual rather than rapid, but the fundamentals suggest that it is likely to occur. Landlords and investors should focus on maintaining quality properties and keeping rents competitive yet reflective of the FMR to capitalize on this trend.
In summary, the combination of an affordable median home value and a favorable gap between market rent and FMR provides a solid foundation for both short-term cash flow improvements and long-term appreciation. The setup implies a cautious optimism for the market, with the potential for steady growth as opposed to explosive gains.
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.