Location: Union County, IA | Metro: Des Moines-West Des Moines, IA HUD Metro FMR Area
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 | $800 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,360 |
| 5 Bedrooms | $1,578 |
| 6 Bedrooms | $1,767 |
| 7 Bedrooms | $1,908 |
| 8 Bedrooms | $2,003 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $179,265 | 0.56% | F |
| 3BR | $1,340 | $292,502 | 0.46% | F |
U.S. Census Bureau data (2024)
With a Fair Market Rent (FMR) of $970 for ZIP 50149 in Lorimor, IA, for fiscal year 2024, landlords should note that the actual market rent, according to the Census American Community Survey, is $836. This discrepancy suggests there might be opportunities to slightly increase rental rates without exceeding the affordability threshold set by the government. The median home value stands at $252,329, indicating a moderate housing market where property values are neither too high nor too low. Given that 17.6% of residents are renters, the demand for rental properties is steady but not overwhelming, which could mean competition among landlords is manageable.
The median income of $59,167 provides insight into the economic profile of potential tenants. While the lack of specific data on days on market (DOM) and the percentage of price-cut share indicates a stable market with minimal fluctuations, it's crucial to keep rental prices competitive to attract tenants. However, landlords can leverage the FMR as a benchmark to ensure they're not undercharging for their properties.
In terms of Section 8 participation, the data points to a balanced approach. Landlords can offer rents close to the $836 market rate while still being within the $970 FMR limit. This ensures they receive fair compensation while also providing affordable housing options to eligible tenants. Given the economic conditions and the relatively moderate home values, participating in the Section 8 program can be a financially viable option for landlords looking to maintain occupancy rates and manage property costs effectively.
Verdict: Section 8 is a sound investment strategy in Lorimor, IA, given the alignment between market rents and FMRs.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.