Location: Winnebago County, IA | Metro: Hancock County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
U.S. Census Bureau data (2024)
In ZIP code 50436, the economics of Section 8 housing can be broken down into specific financial terms that directly impact landlords. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $970. This figure represents the maximum amount that the Housing Choice Voucher program will pay towards rent in this area. However, it's important to understand how this payment is structured and what the actual reimbursement might look like.
The local market rent for a two-bedroom unit, based on Census ACS data, is around $739. This lower market rent suggests that landlords in ZIP 50436 may have to adjust their expectations regarding rental income when participating in the Section 8 program. Here's a step-by-step breakdown of how the voucher works:
The voucher holder is required to contribute 30% of their adjusted monthly income toward rent. For example, if a tenant's monthly income is $1,000, they would pay $300 towards rent.
The remaining amount, up to the SAFMR limit, is covered by the Section 8 program. In our example, the government would pay the difference between the tenant’s contribution and the SAFMR, which is $670 ($970 - $300).
Utility allowances are also factored into the overall compensation but do not affect the base rent reimbursement. These allowances vary but typically cover a portion of the tenant's utility costs.
The SAFMR being set specifically for ZIP 50436 means that the rate is tailored to reflect the actual cost of renting in this area. Given the local market rent of $739, a landlord can expect a reimbursement closer to this figure rather than the SAFMR cap. If the market rent is below the SAFMR, the government payment will adjust accordingly to ensure the total rent does not exceed the market rate.
In summary, for a two-bedroom apartment in ZIP 50436, landlords can anticipate a reimbursement of approximately $670 from the Section 8 program, assuming the tenant contributes the standard 30%. This results in a surplus for the landlord compared to the local market rent, with an additional $670 - $739 = -$69 per month, meaning landlords receive slightly more than the average market rent. However, this surplus can vary depending on the exact market conditions and the individual tenant's income contributions.
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.