Section 8 Fair Market Rent (FMR) for ZIP 50133 - 2027

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$690
1 Bedroom	$730
2 Bedrooms	$930
3 Bedrooms	$1,150
4 Bedrooms	$1,390
5 Bedrooms	$1,612
6 Bedrooms	$1,805
7 Bedrooms	$1,949
8 Bedrooms	$2,046

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Based on the data provided, the analysis for the ZIP code 50133 (Kellerton, IA) focuses on the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area for fiscal year 2026 is set at $920, while the Census ACS reports the average market rent at $679. This creates a significant gap of $241, or approximately 35.6%, between what the government considers a fair rent and what the market currently offers.

The FMR is higher than the market rent, making it advantageous for landlords who accept Section 8 vouchers. Voucher tenants can help fill this gap, ensuring that landlords receive closer to the $920 FMR rather than the lower market rent. This makes the ZIP code a strong yield play for landlords willing to participate in the Section 8 program.

In the context of Kellerton, where 37.4% of the population are renters, the potential for attracting voucher tenants is substantial. Despite the lack of data on median home values, the median household income stands at $58,375, which suggests that many residents might rely on housing assistance to afford their homes.

A key consideration for landlords is the difference in rental rates between voucher tenants and those paying market rates. Accepting Section 8 vouchers means renting at rates that are below the open-market levels, which could be a trade-off for securing stable, long-term tenancy. However, given the high percentage of renters and the likelihood of voucher usage, landlords can expect steady occupancy and a reliable source of income.

To summarize, the gap between the FMR and market rent in ZIP 50133 positions this area as a favorable investment for landlords who wish to benefit from the Section 8 program. The higher FMR ensures that landlords receive more than the current market rate, thereby improving their yield. The local context supports this strategy, with a significant portion of the population being renters and likely relying on housing vouchers.

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.