Location: Winnebago County, IA | Metro: Kossuth County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,360 |
| 5 Bedrooms | $1,578 |
| 6 Bedrooms | $1,767 |
| 7 Bedrooms | $1,908 |
| 8 Bedrooms | $2,003 |
U.S. Census Bureau data (2024)
In ZIP code 50424, the economics of Section 8 vouchers can be straightforward when understood correctly. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for FY 2026 is set at $920. This figure represents the maximum amount that the Housing Choice Voucher program will pay for a two-bedroom rental unit in this area.
However, the local market rent for a similar unit is lower, standing at $628 according to the latest Census ACS data. This means that landlords who accept Section 8 vouchers can potentially receive a higher payment compared to the average market rent. But it's important to understand how the actual reimbursement works once you factor in the tenant portion and utility allowances.
The voucher system operates on a shared responsibility model where the tenant is required to pay a portion of the rent, typically around 30% of their income, and the government covers the rest up to the SAFMR. Additionally, there are utility allowances which vary but generally add about $150-$200 per month to the reimbursement amount.
To illustrate, if a tenant's portion is $200 based on their income, and the utility allowance is $175, then the total reimbursement for a landlord accepting a Section 8 voucher would be the sum of these amounts, capped at the SAFMR of $920. So, in this scenario, the landlord would receive $375 from the tenant and $545 from the government, totaling $920.
Given that the local market rent is $628, this means that landlords in ZIP 50424 accepting a Section 8 voucher could see a surplus of approximately $292 per month over the typical local market rent. This surplus provides an economic incentive for landlords to participate in the Section 8 program, especially if they have units that might otherwise struggle to find tenants at market rates.
It's crucial to note that while the SAFMR is $920, the actual reimbursement will depend on the tenant's income and the utility allowances. Landlords should expect to receive a reimbursement close to the SAFMR, but not necessarily exactly $920 every month. Nonetheless, the potential for a significant surplus over the local market rent makes participating in the Section 8 program financially viable for many landlords in ZIP 50424.
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.