Location: Webster County, IA | Metro: Greene 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 | $670 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,190 |
| 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 |
|---|---|---|---|---|
| 3BR | $1,190 | $173,365 | 0.69% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 50544 are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $920 per month for fiscal year 2026. In contrast, the local market rent, based on Census ACS data, is much lower at $550 per month.
A landlord participating in the Section 8 program receives a voucher payment from the government to cover part of the rent. This payment is calculated based on the difference between the SAFMR and the tenant's portion of the rent, which is typically 30% of their income. Additionally, there are utility allowances that vary but can be significant depending on the region and type of unit.
To illustrate, let's assume the tenant's portion of the rent is $276, which is 30% of a hypothetical income of $920 (the same amount as the SAFMR for simplicity). The government would then pay the landlord the remaining $644 ($920 - $276) plus any applicable utility allowance. If the utility allowance is $100, the total reimbursement from the government would be $744 per month.
This means that even though the SAFMR is $920, the actual reimbursement received by the landlord will be less due to the tenant's contribution and the utility allowance. In ZIP 50544, where the market rent is $550, the landlord would receive an additional $194 above the market rate, assuming the utility allowance is $100.
In summary, the typical reimbursement gap or surplus for a two-bedroom apartment in ZIP 50544 under the Section 8 program is a surplus of $194 per month. This surplus is the amount by which the government reimbursement exceeds the local market rent, making participation in the Section 8 program financially viable for landlords in this area.
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.