Location: Webster County, IA | Metro: Humboldt 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 | $820 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,280 |
| 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 | $153,682 | 0.61% | D |
| 3BR | $1,280 | $217,907 | 0.59% | F |
| 4BR | $1,550 | $293,926 | 0.53% | F |
| 5BR | $1,798 | $414,045 | 0.43% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 50548, which encompasses Humboldt, Iowa, and Humboldt County, are straightforward when you understand how the payments are structured. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $920. This figure is specific to this ZIP code and reflects the local rental market conditions.
However, the local market rent for a similar two-bedroom unit, according to the Census ACS data, is $741. This discrepancy between the SAFMR and the actual market rent means that landlords participating in the Section 8 program in ZIP 50548 will receive a higher subsidy per unit compared to the average market rate.
A voucher payment under Section 8 consists of two parts: the tenant's portion and the subsidy portion paid by the government. The tenant's portion is typically 30% of their adjusted monthly income. For instance, if a tenant has an adjusted monthly income of $1,000, they would be responsible for paying $300 towards rent. The remaining amount, up to the SAFMR limit, is covered by the housing authority. In this case, if the tenant pays $300, the housing authority would pay the landlord $620 to meet the total SAFMR of $920.
Additionally, the Section 8 program includes utility allowances, which vary but can add further support to tenants. If we assume a utility allowance of $100, the total reimbursement to the landlord for a two-bedroom unit would be $720 ($620 for rent plus $100 for utilities).
To summarize, in ZIP 50548, the typical reimbursement for a two-bedroom unit would be $920, which is significantly above the local market rent of $741. After accounting for the tenant's contribution and utility allowances, the landlord receives a total of $720. This leaves a surplus of $179 over the local market rent of $741, making participation in the Section 8 program financially beneficial 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.