Location: Hamilton County, IA | Metro: Hamilton 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 | $740 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,190 |
| 4 Bedrooms | $1,310 |
| 5 Bedrooms | $1,520 |
| 6 Bedrooms | $1,702 |
| 7 Bedrooms | $1,838 |
| 8 Bedrooms | $1,930 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,190 | $212,432 | 0.56% | F |
U.S. Census Bureau data (2024)
In ZIP code 50130, the economics of Section 8 housing can be clearly understood by examining the SAFMR (Small Area Fair Market Rent) and comparing it to the local market rent. For a two-bedroom apartment, the SAFMR for FY 2026 is set at $1,020. This figure represents the maximum amount that a landlord can receive from the housing authority for renting to a Section 8 participant.
The local market rent, according to Census ACS data, is currently $858 for a similar two-bedroom unit. This discrepancy between the SAFMR and the actual market rent is significant and forms the basis of the financial considerations for landlords.
When a tenant uses a Section 8 voucher, they are responsible for paying a portion of the rent, typically around 30% of their adjusted income. The remainder, up to the SAFMR limit, is paid by the housing authority. In addition to the base rent, landlords also receive utility allowances which are intended to cover the cost of utilities such as electricity, water, and gas. These allowances vary but are an additional benefit to landlords.
To illustrate, if a landlord charges the SAFMR rate of $1,020, and the tenant's portion is $250 based on their income, the housing authority will pay the difference, which is $770. This sum, combined with the utility allowance, should cover the landlord's costs and provide a steady income stream.
However, if the landlord sets the rent at the local market rate of $858, the housing authority would still pay up to the SAFMR limit, and the reimbursement would fully cover the rent plus provide extra funds for utilities. In this case, there would be no reimbursement gap, and the landlord would effectively receive the full $1,020 per month for a two-bedroom unit, leading to a surplus of $162 per month over the market rate.
The typical reimbursement gap or surplus for a two-bedroom voucher in ZIP 50130, when the landlord charges the market rate, is a surplus of $162. This surplus can be particularly attractive for landlords who want to ensure they are receiving a competitive rate for their property while participating in the Section 8 program.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.