1st Advantage MortgageIn Terre Haute, IN, rental investors qualify on the property's rent instead of personal income. The market data behind that: $922 median rent, $115,700 median home value and 48% of households renting.
Terre Haute rental market at a glance
For Terre Haute, the latest five-year ACS shows a median gross rent of $922 (about 13% below the Indiana median of $1,062) and a median owner-occupied value of $115,700 (well below the Indiana median of $218,200). A quick screen: twelve months of Terre Haute median rent over its median home value equals 9.6%, on the high side, which usually points to lower purchase prices relative to rent. Use it to compare markets, then replace it with real rent evidence for the address.
| Indicator | Indiana | Terre Haute | Difference |
|---|---|---|---|
| Tax as a share of home value | 0.74% | 0.95% | +29% |
| Annual property tax bill, median | $1,614 | $1,104 | -32% |
| Household income, median | $71,957 | $43,126 | -40% |
| Typical owner-occupied value | $218,200 | $115,700 | -47% |
| Persons per household | 2.46 | 2.23 | |
| Share in 2-4 unit buildings | 6.0% | 12.1% | +101% |
| Share of homes detached | 72.6% | 66.5% | -8% |
| Degree holders, age 25+ | 29.5% | 24.6% | -17% |
| Workers on their own account | 8.0% | 6.6% | -17% |
| Renters paying 30%+ of income | 48.1% | 61.2% | +27% |
| Units sitting vacant | 8.8% | 12.0% | +37% |
| Typical construction year | 1976 | 1957 | |
| Annual rent divided by value | 5.8% | 9.6% | +64% |
| Households that rent | 29.4% | 47.8% | +62% |
| Residents (Census estimate) | 6,851,073 | 58,427 |
Roughly 47.8% of occupied housing in Terre Haute is rented, well above the Indiana median of 29%. Against a median household income of $43,126 (well below the Indiana median of $71,957), 61% of renters report rent at or above 30 percent of income.
The kind of housing in Terre Haute
Detached single-family homes make up 67% of the housing units in Terre Haute, so most rentals here compete as houses, and rents follow neighborhood and school boundaries more than building type. Median year built is 1957. Older buildings tend to need more capital work, and insurers notice roof and electrical age.
The Census counts 12% of Terre Haute housing units as vacant, with a rental vacancy figure of 6.7%.
What the data means for Terre Haute buyers
A 9.6% ratio in Terre Haute gives buyers cushion to absorb insurance and association costs, though higher-yield areas sometimes come with higher turnover. Older homes dominate Terre Haute, so ask about roof, panel and plumbing age early, because insurers and appraisers do. With about 48% of households renting, Terre Haute has enough tenants to support investors without being dominated by them.
Insurance, tax and flood context for Terre Haute
Tax drag is easy to underestimate. Terre Haute owners report a median $1,104 in annual real estate taxes, well below the Indiana median of $1,614, an effective 0.95% of median home value. That is about 10% of a year of median rent gone to taxes before the loan is even counted.
For hazards, FEMA's National Risk Index puts Vigo County at a relatively moderate overall rating, and its top-ranked hazards are strong wind (relatively high), winter weather (relatively high) and earthquakes (relatively moderate).
| Hazard in Vigo County, FEMA index | Level |
|---|---|
| Hail exposure | Relatively Moderate |
| Earthquakes exposure | Relatively Moderate |
| Winter weather exposure | Relatively High |
| Strong wind exposure | Relatively High |
| Social vulnerability score | Relatively Moderate |
| Annualized loss estimate | Relatively Low |
| Composite risk | Relatively Moderate |
Many investors meet insurance too late, so get a quote tied to the Terre Haute property's roof age and flood zone before you waive your inspection period.
The ratio in Terre Haute dollars
Try the math at the medians. With rent at $922 and taxes near $92 a month, a 1.00 DSCR leaves $830 for everything else in the payment, a 1.20 ratio leaves $676, and a 1.25 ratio leaves $646. Any real property will differ, but the exercise shows how little room insurance and dues can take.
Legal checks before a Terre Haute purchase
Local rental rules in Terre Haute are not summarized here because we could not verify them from a city source. Ask the city and Vigo County about registration, inspection and short-term rental requirements, and confirm what an HOA allows. On lodging taxes, a Terre Haute host should read this first. Indiana charges state sales tax on rentals of under 30 days plus a county innkeeper's tax that varies by county, and Airbnb collects both for listings it handles while owners who rent directly register with the Department of Revenue.
Indiana gives a landlord 45 days after the tenancy ends to return a deposit, an easy deadline to miss without a checklist.
Other Indiana cities for context
Other Indiana markets on this site show median values from $94,700 (Gary) to $140,400 (South Bend); Terre Haute is $115,700.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| Gary | 51% | $915 | $94,700 | 68,113 | $1,012 |
| South Bend | 40% | $1,332 | $140,400 | 103,085 | $1,033 |
| Kokomo | 37% | $1,075 | $137,400 | 59,122 | $939 |
| Terre Haute | 48% | $1,104 | $115,700 | 58,427 | $922 |
Employers and institutions near Terre Haute rentals
The self-employed share of the workforce is 6.6%, and those owners tend to be exactly the buyers DSCR financing was built for. Other workforce markers: government workers are about 15% of employment, 25% of adults hold a bachelor's degree or higher and 7% of commuters travel 45 minutes or more.
Higher education in and around Terre Haute includes Indiana State University, Rose-Hulman Institute of Technology and Ivy Tech Community College of Indiana, which feeds demand for student, staff and faculty housing near campus. Access runs through interstate access via I-70 and air service through Terre Haute Regional Airport and Sky King Airport, which shapes where commuters want to live and how long a showing takes.
Taking a Terre Haute deal to a lender
A good Terre Haute file has four pieces: rent evidence, a tax estimate, an insurance quote and cash. Preview the ratio in the calculator, then apply or talk to us.
More Indiana markets
- All Indiana DSCR loans
- DSCR loans in Kokomo, IN
- DSCR loans in South Bend, IN
- DSCR loans in Gary, IN
- Every market we cover
Where we checked
- Indiana DOR, county innkeeper's tax
- 2020 to 2024 ACS data used for Terre Haute
- FEMA hazard ratings for Vigo County
- Wikipedia article, Terre Haute, Indiana
- Indiana security deposit statute (IC 32-31-3-9, 3-12, 3-13, 3-14, 3-15, 3-16)
The Terre Haute statistics are five-year ACS estimates (2020 to 2024), which have sampling error. RedFlagLease (CC BY 4.0) supplies the Indiana landlord-tenant notes, and the statutes are linked. Facts were checked in October 2026, and rules change.
Pre-offer checklist
On a Terre Haute purchase, line up the lease, the tax estimate, the insurance quote and any association dues before the appraisal is ordered, and ask the appraiser's office what rent comparables they plan to use.
DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.
Frequently asked questions
Lease or market rent: what counts in Terre Haute?
It comes from a lease or from the market rent in the appraisal, whichever the program uses. Against that, the Terre Haute median is $922.
What payment can a Terre Haute rent support?
Taxes, insurance and dues are inside the payment the lender tests. Run $922 through a 1.25 ratio and the ceiling is about $738; subtract $92 for median taxes and $646 remains.
What do Terre Haute owners pay in real estate taxes?
Median taxes paid are $1,104 a year, or 0.95% of median value, compared with 0.74% statewide. Ask Vigo County's tax office what the bill becomes after your sale.
Can I use Airbnb income to qualify in Terre Haute?
Possible where lender guidelines allow it, subject to Terre Haute and Vigo County rules and to the building's association. Lenders usually average a year of bookings and discount the result.
Are there deposit limits for Terre Haute rentals?
Under IC 32-31-3-9, 3-12, 3-13, 3-14, 3-15, 3-16: The deposit is due back within 45 days of move-out. Check the statute and your lease before collecting.
Is flood or storm risk a concern for a Terre Haute rental?
FEMA's index puts the county at relatively moderate overall. A lender cares about the premium and any flood requirement, which are address-specific in Terre Haute.
Is an entity required for a IN DSCR loan?
It is optional. Lenders will close in a properly formed LLC and generally want the members to guarantee. Ask your accountant how a IN entity would be taxed.