Location: Marshall County, IA | Metro: Marshall County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $700 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,240 |
| 5 Bedrooms | $1,438 |
| 6 Bedrooms | $1,611 |
| 7 Bedrooms | $1,740 |
| 8 Bedrooms | $1,827 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 50078 are straightforward. The SAFMR (Standard Amount Fair Market Rent) for a two-bedroom apartment is set at $950 per month for fiscal year 2026. This is the maximum amount that a landlord can receive from the housing authority for a two-bedroom unit under the Section 8 program. In contrast, the local market rent for a similar unit is $1,125 per month, according to Census ACS data.
A landlord should understand that the voucher does not cover the entire rent. Instead, it reimburses the difference between the tenant's contribution and the actual rent. For instance, if a tenant is required to pay 30% of their income towards rent, and their income is $2,000 per month, they would contribute $600 towards the rent. The remaining amount up to the SAFMR of $950 would be covered by the housing authority, making the total reimbursement to the landlord $950 in this example.
In addition to the rent reimbursement, the housing authority also provides utility allowances. These allowances vary but typically cover a portion of the tenant's electricity, gas, water, and sewer costs. It is important to note that the utility allowance is not an additional payment on top of the rent but rather a component of the overall SAFMR calculation.
To illustrate, let’s assume the utility allowance is $100. If the tenant contributes $600 towards rent and the utility allowance is $100, the landlord will receive $950 in total reimbursement. This means that the landlord must ensure the rent plus utilities do not exceed $950 to fully utilize the voucher benefits.
The SAFMR being set for this specific ZIP code means that the rate applies only to this area. Landlords outside of ZIP 50078 would have different rates based on their respective ZIP codes’ SAFMR values.
Given the local market rent of $1,125 and the SAFMR of $950, there is a $175 monthly gap between what the landlord could charge in the open market and what the housing authority will reimburse under Section 8. This gap represents the potential loss or surplus depending on the landlord's willingness to accept the lower reimbursement rate.
In summary, landlords in ZIP 50078 must balance the SAFMR rate of $950 against the local market rent of $1,125 when deciding whether to participate in the Section 8 program. The reimbursement covers a significant portion of the rent, but the landlord will need to account for the $175 gap in their financial planning.
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.