Section 8 Fair Market Rent (FMR) for ZIP 51047 - 2027

Location: O'Brien County, IA | Metro: Buena Vista County, IA

Investment Score for ZIP 51047

Monthly Rent (2BR)

$1,040

Median Price (2BR)

$130,933

1% Rule

0.79%

Annual Yield

9.53%

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	$780
1 Bedroom	$810
2 Bedrooms	$1,040
3 Bedrooms	$1,360
4 Bedrooms	$1,390
5 Bedrooms	$1,612
6 Bedrooms	$1,805
7 Bedrooms	$1,949
8 Bedrooms	$2,046

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	$1,040	$130,933	0.79%	D
3BR	$1,360	$160,559	0.85%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

693

Median Household Income

$101,000

Housing Units

414

Renter Percentage

11.1%

Occupancy Rate

75.8%

Renter Occupied

The zip code 51047, located in Peterson, Iowa, offers a stable environment for real estate investment. The area is characterized by modest economic conditions and a mix of homeowners and renters. This analysis delves into key metrics that can guide landlords and small-portfolio investors in making informed decisions about rental properties in this region.

The Fair Market Rent (FMR) for a two-bedroom apartment in the metro area for fiscal year 2026 is set at $1,070.
The average market rent for the same type of unit, based on Census ACS data, stands at $925.
The median home value in Peterson, IA, is $158,753, reflecting the overall affordability of the housing market.
Renters make up 11.1% of the population, indicating a smaller but steady demand for rental units.
The median household income in the area is $101,000, which suggests that residents have a moderate level of disposable income.
Unfortunately, the exact number of days on market (DOM) for rental listings is not available, but the other indicators provide a comprehensive view of the local rental market.

Investors considering the Peterson, IA, market should note the discrepancy between the Fair Market Rent and the actual market rent, suggesting there might be room for slight increases in rental rates. However, the relatively low renter share indicates that competition for tenants could be high. The median income figure supports the feasibility of higher rents, but investors must balance this against the median home values to ensure their pricing remains competitive. Overall, while the market presents opportunities, careful consideration of these factors will be crucial for successful investment.

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.