Location: Ida County, IA | Metro: Cherokee County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
U.S. Census Bureau data (2024)
In ZIP code 51025, the economics of Section 8 housing can be analyzed based on the SAFMR (Small Area Fair Market Rent) and local market conditions. The SAFMR for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $1,100. This figure represents the maximum amount that the housing authority will pay towards a landlord's rent for a unit that qualifies under the Section 8 program.
The local market rent, according to Census ACS data, stands at $825 for a similar two-bedroom unit. This lower figure indicates the average rent that tenants might otherwise pay in the open market without the assistance of a voucher.
A landlord participating in the Section 8 program should understand how the reimbursement works. The voucher pays the difference between the tenant's contribution and the SAFMR. Tenants are generally required to contribute 30% of their adjusted income towards rent. If we assume an average adjusted income of $1,500 per month, the tenant would contribute $450 towards the rent. In addition to the base rent, there are utility allowances that can vary but typically add another $100-$200 to the total reimbursement.
Let's break it down: if the SAFMR is $1,100 and the tenant contributes $450, the housing authority would cover the remaining $650. Including a conservative utility allowance of $150, the total reimbursement would be around $800. This amount closely aligns with the local market rent of $825, indicating that landlords in ZIP 51025 can expect a reimbursement that covers nearly all of their costs.
The typical reimbursement gap or surplus for a two-bedroom unit in this ZIP code would be minimal, given the close alignment between the SAFMR and the local market rent. Landlords might see a slight shortfall of about $25 per month, which they would need to absorb unless they can negotiate a higher contribution from the tenant or adjust utility allowances. However, this gap is relatively small compared to the overall rental income and does not significantly impact profitability.
To summarize, landlords in ZIP 51025 participating in the Section 8 program can expect a reimbursement that covers most of their rental costs, with a minor gap of approximately $25 per month for a two-bedroom unit. This makes Section 8 a viable option for maintaining occupancy and ensuring steady cash flow.
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.