Section 8 Fair Market Rent (FMR) for ZIP 51011 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A skeptical investor considering investing in ZIP 51011 (Chatsworth, IA) might raise several objections:

• Will FMR $920 (metro FY 2026) cover the mortgage on a home?: The median home value in Chatsworth is $141,200, which is significantly lower than the national median of $338,100. Although the specific mortgage amount isn't provided, a lower median home value suggests that mortgages would also be relatively lower. Assuming a typical down payment of 20%, the mortgage on a $141,200 home would be approximately $113,000. At current interest rates, the monthly mortgage payment would likely fall below the FMR of $920, making it feasible for renters to cover the mortgage.
• Is there enough renter demand at 13.3%?: Renter demand in ZIP 51011 is at 13.3%, which is slightly above the national average. Additionally, the rental vacancy rate is zero, indicating strong demand and suggesting that there is a sufficient pool of potential renters willing to pay the market rate. The median monthly rent for a 1-bedroom apartment is $650, which is reasonable given the local median income levels.
• Will vouchers keep pace with market rents?: While specific voucher amounts aren't detailed in the data, the median monthly rent for a 1-bedroom apartment is $650. If the FMR of $920 is a reliable indicator, it suggests that vouchers should cover a significant portion of the rent, if not the entire amount. However, the data does not provide a direct comparison of voucher amounts to market rents, so this remains an assumption based on the FMR figure.

The housing market in Chatsworth has shown positive appreciation rates, with a 1-year increase of 10.62%, outpacing the national average of 8.27%. This indicates a growing market that could benefit both homeowners and landlords.

In conclusion, despite some uncertainties, the data suggests that ZIP 51011 presents a viable investment opportunity, particularly for those looking to capitalize on a growing market with strong renter demand.

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.