Location: Tama County, IA | Metro: Benton County, IA HUD Metro FMR Area
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 | $710 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,020 | $140,780 | 0.72% | D |
| 3BR | $1,310 | $235,358 | 0.56% | F |
| 4BR | $1,680 | $311,864 | 0.54% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP 50651, La Porte City, IA, for fiscal year 2024 is set at $890. 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 the actual rent you will receive; it's the benchmark used to determine the rent subsidy.
In comparison, the average rent for ZIP 50651, according to the Census Bureau's American Community Survey (ACS), is $971. This indicates that the market rent slightly exceeds the Section 8 payment standard, meaning you might have to adjust your rent to qualify for the program. However, the difference between the FMR and the market rate suggests there is still a reasonable profit margin for landlords participating in Section 8.
The renter share in La Porte City is 17.8%, which means nearly one in every five households rents their home. This percentage shows a moderate demand for rental properties, including those covered by Section 8. While the demand isn't exceptionally high, it does provide a stable tenant base for landlords willing to participate in the program.
When acquiring a property in ZIP 50651 for a potential Section 8 rental, the median home value is approximately $230,417. This figure gives you an idea of the investment required to enter the market. Given the relatively low FMR compared to the median home value, it's crucial to ensure that the property meets all the necessary requirements for Section 8 eligibility to avoid any unexpected costs.
Before making a final decision on whether to participate in the Section 8 program with a rental in ZIP 50651, verify that the property passes a Housing Quality Standards (HQS) inspection. This inspection ensures that the rental unit meets basic safety and habitability criteria, which is mandatory for Section 8 participation. Failure to meet these standards could result in the property being ineligible, regardless of its other qualities.
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.