Location: Fayette County, IA | Metro: Buchanan County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 50671 are governed by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $930 per month for fiscal year 2026. This SAFMR figure is specific to this ZIP code, reflecting the unique housing costs and market conditions found here.
Local market rent data for ZIP 50671 is currently unavailable, making it difficult to directly compare the SAFMR to what landlords might typically charge in the open market. However, the SAFMR serves as a benchmark for rental assistance payments under the Section 8 program.
A landlord participating in the Section 8 program receives a subsidy from the Housing Choice Voucher Program to cover the difference between the tenant's contribution and the total rent. For a two-bedroom unit in ZIP 50671, the tenant is expected to pay 30% of their adjusted income towards rent. If the tenant's income is below a certain threshold, they will receive additional assistance for utilities.
To illustrate, if a tenant's monthly adjusted income is $1,000, they would contribute $300 toward the rent. The remaining amount, up to the $930 SAFMR, would be covered by the government. In this case, the landlord would receive $630 from the voucher program, bringing the total to $930. If the tenant's income is lower, say $800, their contribution would be $240, and the government would cover $690 of the rent, still adhering to the $930 limit.
The utility allowance varies but is designed to help cover electricity, gas, water, and sewer costs. It does not increase the overall rent above the $930 SAFMR; instead, it is an additional payment made directly to the landlord to offset these expenses.
Given the SAFMR of $930 for a two-bedroom apartment, landlords should expect the reimbursement gap or surplus to vary based on the actual market rent charged and the tenant's income level. If the local market rent exceeds $930, landlords will face a shortfall, meaning they must accept a rent lower than what the market might bear. Conversely, if the local market rent is less than $930, landlords might see a surplus, where the government subsidy covers more than the tenant's share of the rent.
In ZIP 50671, the typical reimbursement gap or surplus depends on the actual rents being charged locally. Since the market rent data is currently unavailable, landlords should monitor local trends closely to determine whether they will benefit financially from accepting Section 8 tenants or need to adjust their expectations regarding rental income.
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.