Location: Marion County, IA | Metro: Mahaska 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 | $700 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,130 |
| 4 Bedrooms | $1,230 |
| 5 Bedrooms | $1,427 |
| 6 Bedrooms | $1,598 |
| 7 Bedrooms | $1,726 |
| 8 Bedrooms | $1,812 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,130 | $304,299 | 0.37% | F |
U.S. Census Bureau data (2024)
In ZIP code 50143, the economics of Section 8 housing can be quite straightforward when understood correctly. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $920. This figure is specific to this ZIP code, reflecting the unique rental market conditions here. In contrast, the local market rent for a similar unit, based on Census ACS data, averages around $770.
A common misconception is that the government will pay the entire SAFMR amount directly to landlords. However, the actual reimbursement is calculated differently. Under the Section 8 program, tenants are required to contribute a portion of their income towards rent, which is typically 30% of their adjusted monthly income. For ZIP 50143, if we assume a tenant's contribution is $276 (based on a hypothetical median household income), the government would cover the remainder of the SAFMR up to $920. Therefore, the total reimbursement to the landlord would be the sum of the tenant's payment plus any utility allowances.
The utility allowance varies but is generally designed to help cover the cost of utilities. If we estimate an average utility allowance of $150, the landlord would receive a total of $426 ($276 tenant contribution + $150 utility allowance) per month for a two-bedroom unit. This calculation ensures that the landlord receives the full SAFMR amount, which in this case is $920. It's important to note that the utility allowance is not guaranteed and can vary depending on the tenant's situation and the local housing authority's policies.
Given these specifics, the typical reimbursement gap or surplus for a two-bedroom apartment in ZIP 50143 would be a surplus of $150 ($920 SAFMR - $770 local market rent). This means that landlords participating in the Section 8 program for this ZIP code could potentially earn more than the average market rent for a two-bedroom unit. However, it's crucial to understand that the reimbursement is based on the SAFMR, which is higher than the local market rent, thus providing a financial incentive for landlords to participate in the 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.