Location: Montgomery County, IA | Metro: Montgomery County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $700 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
U.S. Census Bureau data (2024)
The ZIP code 50847 presents a unique challenge for landlords and small-portfolio investors considering Section 8 tenants. With a population of 35,000, only 4.8% of residents are renters, indicating a homeowner-dominated area. This percentage suggests that the demand for rental properties using Section 8 vouchers is likely to be lower compared to areas with higher concentrations of renters.
Median household income in ZIP 50847 stands at $68,125. While this figure is significant, it does not directly correlate to market rent due to the lack of specific data on average rent prices in the area. However, we can infer that if the typical rent aligns closely with the Fair Market Rent (FMR) of $930, then it would consume approximately 13.7% of the median household income. This calculation is based on the assumption that a household's rent should not exceed 30% of their income to maintain affordability, a guideline often used in housing assistance programs.
The FMR of $930, set for FY 2026 in the metro area, provides a benchmark for landlords. It implies that for a property to be considered affordable under the Section 8 program, the rent should not exceed this amount. Given the relatively low percentage of renters in the area, landlords might find it challenging to fill vacancies with Section 8 tenants, especially if the rent exceeds the FMR.
In terms of the expected tenant profile, landlords in ZIP 50847 should anticipate working with individuals who are financially constrained but still capable of contributing up to 30% of their income towards rent. These tenants will likely require the support of housing vouchers to afford the local market rates. The scarcity of Section 8 tenants means landlords must be prepared for competition among other landlords who also accept vouchers, potentially leading to a need for property improvements or reduced rent to attract these tenants.
To conclude, while ZIP 50847 offers opportunities for landlords who accept Section 8 tenants, the limited number of renters and the dominance of homeowners suggest that securing such tenants may require additional effort and flexibility. Landlords should focus on maintaining properties that meet the needs of financially strained families and be ready to negotiate rents that align with the FMR to ensure compliance with the program and attractiveness to potential tenants.
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.