Section 8 Fair Market Rent (FMR) for ZIP 51046 - 2027

Investment Score for ZIP 51046

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$720
1 Bedroom	$740
2 Bedrooms	$970
3 Bedrooms	$1,160
4 Bedrooms	$1,280
5 Bedrooms	$1,485
6 Bedrooms	$1,663
7 Bedrooms	$1,796
8 Bedrooms	$1,886

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$970	$134,095	0.72%	D
3BR	$1,160	$178,785	0.65%	D
4BR	$1,280	$215,970	0.59%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Based on the latest data, the HUD Fair Market Rent (FMR) for the Paullina, IA, O'Brien County metro area (ZIP 51046) is set at $1,000 for fiscal year 2026. In contrast, the market rent, as reported by the Census ACS, stands at $895. This indicates that voucher tenants can cashflow at the FMR, suggesting a positive financial outcome for landlords and small-portfolio investors who lease properties at or slightly below the FMR. The median home value in ZIP 51046 is $171,443. Given the market rent of $895, the rent-to-price ratio can be calculated as follows: $895 / $171,443 = 0.0052, or approximately 0.52%. This ratio is low compared to typical national averages, which often range between 1% and 2%, indicating that the rental income alone may not fully cover the cost of ownership without considering other factors such as utility allowances or local housing authority policies. The data does not provide a median Days on Market (DOM) or a percentage of price cuts, which would be relevant for assessing the rent-versus-buy dynamics. However, given the relatively low median home value and the higher FMR compared to market rent, the cashflow potential for Section 8 investors appears favorable. The strongest investor angle in this market is **cashflow** due to the discrepancy between the higher FMR and the lower market rent, allowing landlords to receive a subsidized rent that exceeds the typical market rate. This provides a stable and predictable income stream for investors, making it an attractive opportunity in ZIP 51046.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.