Location: Cherokee County, IA | Metro: Cherokee County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,200 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 51037 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $940, while the Census ACS data indicates that the average market rent is $773. This creates a $167 difference, or approximately a 22.5% gap, in favor of the FMR.
The disparity means that landlords can potentially benefit from accepting Section 8 tenants. Since the FMR is higher than the market rent, properties that participate in the Section 8 program can command higher rents than those in the open market. This makes it a strategic yield play for landlords who wish to maximize their rental income without having to invest in extensive property improvements.
In the broader context of ZIP 51037, where 25.3% of residents are renters, the median home value stands at $176,405 and the median income is $58,958. These figures suggest that there is a moderate level of economic activity and a reasonable demand for rental properties. However, the lower median income implies that many residents might find it challenging to afford market rents without assistance, making the Section 8 program particularly attractive.
Landlords should consider the administrative aspects of participating in the Section 8 program, including background checks, lease agreements, and regular inspections. Despite these requirements, the potential for higher rents compared to the open market can offset the costs associated with housing voucher tenants. This is especially true given the current market conditions where the FMR exceeds the actual market rent, creating an opportunity for landlords to earn more per unit.
To summarize, the gap between the FMR and the market rent in ZIP 51037 presents a clear yield advantage for landlords willing to accept Section 8 tenants. With a $167 differential and a 22.5% premium over market rates, the program offers a compelling financial incentive. Moreover, the local economic indicators support the viability of this approach, ensuring that landlords can effectively leverage the Section 8 program to enhance their portfolio returns.
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.