Location: Hancock County, IA | Metro: Hancock 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 | $690 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,120 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $930 | $191,022 | 0.49% | F |
| 3BR | $1,120 | $241,300 | 0.46% | F |
| 4BR | $1,550 | $271,293 | 0.57% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 50438, which encompasses Garner, Iowa, stands at $70,350. This figure provides insight into the financial capacity of the typical household in the area. When considering the market rate for rent, which is $744 according to the Census ACS, it becomes evident that a significant portion of the average household's income would be dedicated to housing costs. In fact, spending $744 on rent would equate to nearly 12% of the annual median income, placing a considerable strain on household budgets.
Comparatively, the Fair Market Rent (FMR) set by HUD for the metro area in fiscal year 2026 is $920. This amount represents a higher benchmark for rental costs and is indicative of the federal government's assessment of what constitutes a reasonable rent in the region. However, at $920, the FMR exceeds the market rate by $176, suggesting that many households might find it challenging to afford even the government-supported rates without assistance.
Given that only 18.6% of the 3,995 residents are renters, the competition among landlords for tenants is relatively low. This means that landlords have a smaller pool of potential tenants to draw from, which could impact their ability to fill units at market rates or higher. The affordability gap between the median income and both the market rate and FMR highlights the necessity for rental subsidies to ensure that housing remains accessible to lower-income families.
For landlords considering whether to accept Section 8 vouchers or focus on cash-paying tenants, the data suggests a strategic approach. While accepting vouchers might limit the rent to $920, it ensures a steady stream of tenants who can afford the rent due to federal assistance. On the other hand, relying solely on cash-paying tenants risks vacancies if the $744 market rate is too high for the majority of the local population. The takeaway is that landlords should consider the balance between voucher acceptance and market-rate rents to optimize occupancy and revenue stability.
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.