Location: Wayne County, IA | Metro: Lucas County, IA
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 | $710 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,280 |
| 5 Bedrooms | $1,485 |
| 6 Bedrooms | $1,663 |
| 7 Bedrooms | $1,796 |
| 8 Bedrooms | $1,886 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $950 | $162,975 | 0.58% | F |
| 3BR | $1,280 | $243,142 | 0.53% | F |
| 4BR | $1,280 | $243,625 | 0.53% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 50049, located in Chariton, Iowa, within Lucas County, are straightforward when analyzed against the local rental market. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $970. This figure represents the maximum amount that the Housing Choice Voucher program will reimburse landlords for renting a unit to a participant. However, the local market rent for a similar unit is reported at $704 according to the Census ACS data.
A voucher payment consists of two parts: the tenant's contribution and the utility allowance. The tenant's contribution is typically 30% of their adjusted income. For example, if a tenant has an adjusted monthly income of $1,000, they would contribute $300 towards rent. The utility allowance is a fixed amount based on the size of the dwelling and the region. In ZIP 50049, the utility allowance for a two-bedroom apartment is around $100.
This means that if a landlord rents a two-bedroom apartment to a Section 8 tenant, the total reimbursement would be the SAFMR minus the tenant's contribution plus the utility allowance. Using our example, the landlord would receive:
In this scenario, the landlord would receive a total of $770 per month, which is above the average local market rent of $704. Therefore, the typical reimbursement gap or surplus for a two-bedroom apartment in ZIP 50049 is a surplus of $66.
Note that the SAFMR is specific to this ZIP code, meaning it reflects the unique economic conditions of Chariton, Iowa, and does not apply uniformly across the broader county or metropolitan area. Landlords should also consider that the tenant's contribution can vary based on their income, but the utility allowance remains relatively stable.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.