Section 8 Fair Market Rent (FMR) for ZIP 51033 - 2027

Location: Clay County, IA | Metro: Buena Vista County, IA

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,150
1 Bedroom	$1,160
2 Bedrooms	$1,520
3 Bedrooms	$1,910
4 Bedrooms	$2,000
5 Bedrooms	$2,320
6 Bedrooms	$2,598
7 Bedrooms	$2,806
8 Bedrooms	$2,946

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

421

Median Household Income

$60,625

Housing Units

234

Renter Percentage

10.9%

Occupancy Rate

78.6%

Renter Occupied

In ZIP code 51033, the Section 8 program operates under a Specific Area Fair Market Rent (SAFMR) of $1,280 for a two-bedroom unit in fiscal year 2026. This SAFMR figure is crucial because it sets the maximum amount that a voucher can cover for rent and utilities in this specific area. Local market rents, according to Census ACS data, are slightly higher at $1,360 for a comparable two-bedroom unit.

The SAFMR of $1,280 is not the total payment a landlord will receive. Instead, it's the benchmark against which the actual payment is calculated. Here’s how it works:

A landlord with a property in ZIP 51033 that is approved for the Section 8 program can expect the following:

Tenant Portion: The tenant is required to pay 30% of their adjusted income toward rent. If a tenant has an adjusted income of $1,000 per month, they would contribute $300 towards the rent.
Voucher Payment: The Section 8 voucher will then make up the difference between the tenant’s contribution and the SAFMR. In the case where the SAFMR is $1,280 and the tenant contributes $300, the voucher would cover the remaining $980.
Utility Allowances: Utility allowances are additional payments made directly to the tenant, not the landlord. These allowances vary but are designed to help cover the cost of utilities based on average usage in the area. For simplicity, let’s assume an average utility allowance of $200 per month.

Therefore, in ZIP 51033, if you have a two-bedroom unit, the voucher will reimburse you $980 of the $1,280 SAFMR. The tenant will pay $300, and the utility allowance will be $200, totaling $1,480 when including the utility allowance. However, the utility allowance does not affect your rental income directly; it is paid separately to the tenant.

Given the local market rent of $1,360, landlords might wonder about the financial impact. The typical reimbursement gap or surplus for a two-bedroom unit in ZIP 51033 is a surplus of $120 per month ($1,360 - $1,240). This means that even though the voucher only covers up to $1,280, landlords can still charge the market rate of $1,360, resulting in a net surplus for them.

This surplus is beneficial for landlords as it provides a buffer above the SAFMR, helping to offset potential maintenance costs and ensuring a steady income stream that aligns closely with the local rental market.

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.