Location: Buchanan County, IA | Metro: Buchanan 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 | $700 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $710 | $92,669 | 0.77% | D |
| 2BR | $930 | $187,703 | 0.5% | F |
| 3BR | $1,280 | $234,754 | 0.55% | F |
| 4BR | $1,510 | $259,398 | 0.58% | F |
| 5BR | $1,752 | $337,356 | 0.52% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 50644, which includes Independence, Iowa, is set at $920 for the fiscal year 2026. This figure represents the payment standard for Section 8 vouchers, meaning that if a landlord participates in the program, they will receive a monthly subsidy of up to $920 from the government to cover part of the tenant's rent.
It's important to note that this $920 is not the amount tenants will pay in rent. The tenant typically pays 30% to 40% of their income toward rent, and the rest is covered by the voucher. For comparison, the average rent in Independence, according to the Census American Community Survey, is $829. This indicates that the FMR is slightly higher than the local average, which can be beneficial for landlords as it provides a buffer against market fluctuations.
The 21.5% renter share in Independence suggests that there is a reasonable demand for rental properties. With nearly one in five residents being renters, there is a steady pool of potential tenants who might benefit from Section 8 vouchers. However, it's crucial to understand that this percentage does not guarantee occupancy rates or profitability; it simply shows the proportion of renters in the area.
If you're looking to acquire a property in Independence for your first Section 8 rental, consider that the median home value is approximately $216,076. This figure reflects the typical price you would pay for a home in this area, which could serve as a baseline for your investment decisions.
Before committing to a Section 8 rental, verify that the property meets all local housing quality standards (HQS). These standards ensure that the property is safe, decent, and sanitary, which is mandatory for participation in the program. Failure to meet these criteria can result in penalties and loss of rental income.
In conclusion, the $920 FMR for Independence, Iowa, offers a clear benchmark for the subsidy landlords can expect. It's higher than the local average rent of $829, providing some financial security. The 21.5% renter share signals a modest but present demand for rentals. For an initial investment, the median home value of $216,076 gives a tangible sense of what you might spend. But remember, the key to success is ensuring your property complies with all HQS requirements.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.