Location: Monona County, IA | Metro: Monona County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,160 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 51010 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area, as of fiscal year 2026, is set at $920. In contrast, the Census ACS data indicates a market rent of only $99. This represents a gap of $821, or approximately 830%, between the two figures.
Given that the FMR is significantly higher than the market rent, it becomes evident that voucher tenants can be a strategic yield play for landlords and small-portfolio investors. The FMR serves as a benchmark for determining the maximum amount that a housing voucher will cover. Therefore, landlords who participate in the Section 8 program can expect to receive payments closer to the FMR of $920, rather than the lower market rent of $99.
This discrepancy provides an opportunity to generate higher rental yields. With only 12.5% of residents being renters and a median home value of $209,147, the local real estate market is primarily driven by homeownership. However, the median income of $89,063 suggests that many households might struggle to afford market rents without assistance. As such, the demand for subsidized housing through the Section 8 program is likely to be strong, making it a viable option for investors looking to maximize returns in a challenging rental environment.
It is important to note that while the FMR is higher, participating in the Section 8 program comes with its own set of requirements and responsibilities. Landlords must ensure that their properties meet the minimum housing quality standards and are willing to comply with the terms of the housing assistance contract. Despite these considerations, the potential to lease properties at a rate closer to the FMR of $920 makes the Section 8 program a compelling investment strategy in ZIP 51010.
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.