Section 8 Fair Market Rent (FMR) for ZIP 50605 - 2027

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$720
1 Bedroom	$740
2 Bedrooms	$970
3 Bedrooms	$1,160
4 Bedrooms	$1,440
5 Bedrooms	$1,670
6 Bedrooms	$1,870
7 Bedrooms	$2,020
8 Bedrooms	$2,121

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Based on the data provided, the gap between the Fair Market Rent (FMR) and the market rent in ZIP 50605, which covers Aredale, IA, is significant. The FMR for the metro area in fiscal year 2026 is set at $940, while the market rent, as reported by the Census ACS, stands at $575. This represents a gap of $365, or approximately 63.4%, between the two figures. Given that the FMR exceeds the market rent, this makes ZIP 50605 a prime candidate for a yield play. Landlords who accept Section 8 vouchers can expect to receive the FMR rate, which is higher than what they might achieve in the open market. This scenario benefits investors by ensuring a consistent, above-market rental income stream. In the broader context, 32.6% of residents in Aredale are renters. The median income is $23,125, indicating a community where many residents rely on assistance programs like Section 8. Accepting voucher tenants can help fill vacancies and provide a stable source of income, despite the lower median home value of $42,500.

The disparity between the FMR and the actual market rent presents a unique opportunity for landlords and small-portfolio investors in ZIP 50605. By participating in the Section 8 program, they can leverage the higher FMR rates to secure a better return on their investments.

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.