Location: Terre Haute, IN | Metro: Terre Haute, IN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
U.S. Census Bureau data (2024)
The median income in ZIP code 47966 stands at $62,750, which places significant constraints on rental affordability. The market rate for rentals, according to Census ACS data, is $570 per month. However, when considering the Fair Market Rent (FMR) standard set at $1030 for fiscal year 2024, there is a stark contrast between what the market offers and what the government deems as fair.
This discrepancy means that many renters in ZIP 47966 might find it challenging to afford even the market-rate rents, let alone the higher FMR rates. Given that only 15.8% of the 346 residents are renters, the competition among landlords is likely to be intense for the limited pool of tenants who can meet these financial requirements.
The affordability gap is evident when comparing the median income to both the market rate and the FMR. A household earning the median income would spend approximately 11.1% of their annual income on the market rate rent ($570), which is manageable but tight. In contrast, the FMR of $1030 would consume nearly 20.1% of the median annual income, making it a less viable option for most households.
For landlords, the choice between accepting Section 8 vouchers and relying on cash-paying tenants becomes a strategic decision. While vouchers guarantee a steady stream of income, they are capped at the FMR, which is higher than the market rate but may still be out of reach for many local renters. Cash-paying tenants, although potentially lower in rent amount, offer a more flexible approach and could be easier to attract given the local economic conditions.
The takeaway is clear: landlords in ZIP 47966 should carefully weigh the benefits of voucher stability against the broader appeal of market-rate rents. Given the local income levels and the relatively low number of renters, targeting cash-paying tenants could prove more effective in maintaining occupancy and managing property costs. However, securing voucher-holding tenants can provide long-term financial security, despite the potential challenges in finding qualified applicants.
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.