Location: Pocahontas County, IA | Metro: Humboldt County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 50541 are straightforward. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment is set at $980 per month for fiscal year 2026. This figure represents the maximum amount that the housing authority will pay for a two-bedroom unit in this specific ZIP code.
In contrast, the local market rent for a two-bedroom apartment in ZIP 50541 is $663 according to the Census ACS data. This discrepancy between the SAFMR and the actual market rent creates an opportunity for landlords who participate in the Section 8 program.
A Section 8 voucher works by covering the difference between what a tenant can afford and the actual rent. Specifically, the tenant is responsible for paying 30% of their adjusted income towards rent. For simplicity, let's assume a tenant's adjusted income is $1,000 per month. In this case, the tenant would pay $300 toward rent ($1,000 x 0.30).
The housing authority then pays the landlord the remainder of the rent up to the SAFMR limit. In our example, the housing authority would pay $680 per month ($980 - $300), which covers the market rent of $663 and leaves a slight surplus of $17 per month. This surplus can be used to cover utilities or other expenses.
Note that the SAFMR of $980 is the cap for reimbursement, meaning the landlord cannot charge more than this amount for a two-bedroom unit in ZIP 50541 under the Section 8 program. However, if the market rent is lower, as it is here at $663, the landlord still receives the full market rent plus any surplus, which in this case is $17.
To summarize, a landlord participating in Section 8 in ZIP 50541 for a two-bedroom apartment can expect a total reimbursement of $680 per month, consisting of $300 from the tenant and $380 from the housing authority. This results in a net positive of $17 per month compared to the average market rent.
The typical reimbursement gap or surplus for a two-bedroom apartment in ZIP 50541 under the Section 8 program is thus a surplus of $17 per month. This makes participation in the program financially viable for landlords, even if the reimbursement rates do not fully match the higher SAFMR.
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.