Section 8 Fair Market Rent (FMR) for ZIP 50634 - 2027

Location: Waterloo-Cedar Falls, IA | Metro: Waterloo-Cedar Falls, IA HUD Metro FMR Area

Investment Score for ZIP 50634

F
Monthly Rent (2BR)
$950
Median Price (2BR)
$179,595
1% Rule
0.53%
Annual Yield
6.35%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$660
1 Bedroom$730
2 Bedrooms$950
3 Bedrooms$1,230
4 Bedrooms$1,590
5 Bedrooms$1,844
6 Bedrooms$2,065
7 Bedrooms$2,230
8 Bedrooms$2,342

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $950 $179,595 0.53% F
3BR $1,230 $221,372 0.56% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
761
Median Household Income
$79,583
Housing Units
361
Renter Percentage
13.6%
Occupancy Rate
95.8%
Renter Occupied
47

The Fair Market Rent (FMR) for ZIP 50634, Gilbertville, IA, for fiscal year 2024 is set at $860. This figure represents the maximum amount that a landlord can charge for rent under the Section 8 program. It's important to note that this is not necessarily the amount you will receive as rent; it's the payment standard used by the Housing Choice Voucher Program.

In comparison, the average rent for the area, according to the latest Census American Community Survey (ACS), is $643. This means that the FMR is significantly higher than the local average, potentially offering a better income stream for your rental property.

The 13.6% share of renters in Gilbertville indicates a moderate demand for rental housing. While not extremely high, it suggests there is a reasonable number of potential tenants who could benefit from the Section 8 program. With an acquisition cost of approximately $209,451 for a typical property in the area, the FMR of $860 provides a clearer picture of the financial viability of a Section 8 rental.

To ensure the property meets the requirements, verify that the unit passes the Housing Quality Standards (HQS) inspection. This is a mandatory step before being approved for the Section 8 program. The HQS inspection ensures that the property is safe, decent, and sanitary, which is essential for both compliance and attracting tenants.

In summary, the FMR of $860 offers a higher payment standard compared to the local average of $643, making it a potentially lucrative option for landlords. The 13.6% renter share suggests moderate demand, and with an acquisition cost around $209,451, the economics of a Section 8 rental can be favorable. However, the key to success is ensuring the property meets the necessary standards through an HQS inspection.

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.