Location: Boone County, IA | Metro: Boone County, IA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
U.S. Census Bureau data (2024)
The ZIP code 50040 presents several challenges for potential Section 8 landlords. First, consider the tenant turnover rate, which is likely to be higher due to the significant gap between the market rent of $556 and the Federal Market Rent (FMR) of $900 for FY 2024. This discrepancy suggests that tenants may struggle to afford market rents once their voucher expires, leading to increased turnover.
Vacancy exposure is another concern. The average days on market (DOM) for properties in this area is not available, which can make it difficult to predict how long a property might remain vacant. A prolonged vacancy period can lead to financial losses for landlords, especially when relying on consistent rental income.
Deferred maintenance is also a risk factor. While the typical home value is not specified, the median income of $49,375 indicates that residents may have limited funds for major repairs or upgrades. This could result in higher maintenance costs for landlords, particularly if they inherit properties in need of significant work.
However, these risks must be weighed against the substantial 19.7% renter share in the area. High renter density typically translates into a robust demand for rental housing, including units covered by Section 8 vouchers. This demand can provide a steady stream of tenants and help mitigate some of the risks associated with vacancy and turnover.
In conclusion, despite the potential for higher tenant turnover and deferred maintenance costs, the strong demand for rentals in ZIP 50040 makes it a moderate risk for a first-time Section 8 landlord. The high renter share provides a buffer against vacancy, but careful management will still be required to address maintenance needs and tenant stability.
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.