Location: Cerro Gordo County, IA | Metro: Cerro Gordo County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 50467 are defined by the SAFMR (Small Area Fair Market Rent) which is set specifically for this ZIP code. For a two-bedroom apartment in FY 2026, the SAFMR is $1,030. This figure represents the maximum amount that a Section 8 voucher will cover for rent in this area.
A voucher holder is required to contribute a portion of their income towards rent. Typically, this contribution is 30% of their adjusted monthly income. The voucher program then pays the difference between the tenant's contribution and the SAFMR, up to $1,030. Additionally, there are utility allowances which can vary but generally add a small amount to the total reimbursement.
To illustrate, if a voucher holder has an adjusted monthly income of $2,000, they would be expected to pay $600 towards rent ($2,000 x 0.30). If the SAFMR is $1,030, the voucher program would cover the remaining $430, making the total reimbursement $1,030. However, if the actual rent exceeds $1,030, the landlord must rely on the tenant to cover the excess, which can be a significant risk.
The SAFMR does not account for the entire local market rent, as it is designed to reflect affordable rental levels rather than market rates. In ZIP 50467, the local market rent data is currently unavailable, which makes it challenging to determine the exact gap or surplus between market rents and SAFMRs. However, landlords should expect that market rents often exceed the SAFMR, leading to a potential reimbursement shortfall.
Given the SAFMR of $1,030 for a two-bedroom unit, landlords might find themselves with a reimbursement gap if market rents are higher. Conversely, if market rents are lower, the landlord could receive a surplus, meaning the rent collected would be less than the voucher amount, but the SAFMR would still cover the agreed-upon rent. The key is to align your rental pricing closely with the SAFMR to minimize financial risk and ensure stable tenancy.
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.