Location: Sioux County, IA | Metro: Lyon County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,190 |
| 4 Bedrooms | $1,260 |
| 5 Bedrooms | $1,462 |
| 6 Bedrooms | $1,637 |
| 7 Bedrooms | $1,768 |
| 8 Bedrooms | $1,856 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 51234 are straightforward. The SAFMR (Standard Amount For Moderate Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $920. This figure represents the maximum amount that the housing authority will pay on behalf of a tenant under the Section 8 program. However, it's important to understand how this payment is structured.
The local market rent, as reported by the Census ACS, stands at $762 for a two-bedroom unit. This is the average rent paid by tenants without subsidies in the area. When a tenant uses a Section 8 voucher, they are responsible for paying 30% of their adjusted income towards rent. The remaining portion, up to the SAFMR limit, is covered by the housing authority.
To illustrate, let's assume a tenant has an adjusted monthly income of $1,500. Thirty percent of this income would be $450, which is the amount the tenant must contribute toward the rent. The housing authority will then cover the difference between the tenant's contribution and the SAFMR, which in this case is $920 minus $450, equaling $470. It's crucial to note that the SAFMR is specific to this ZIP code, meaning it reflects the unique cost of living here.
In addition to covering part of the rent, the housing authority also provides a utility allowance. This allowance varies based on the number of bedrooms and the specific needs of the household but generally ranges from $100 to $200 per month. For simplicity, let's assume a utility allowance of $150. This means the total reimbursement a landlord can expect from the housing authority is the $470 rent subsidy plus the $150 utility allowance, totaling $620.
Given the local market rent of $762, landlords in ZIP 51234 who accept Section 8 vouchers will face a shortfall. Specifically, the gap between the market rent and the voucher reimbursement is $762 minus $620, leaving a deficit of $142 per month. This economic reality underscores the importance of understanding the financial implications before agreeing to participate in the Section 8 program.
In summary, landlords should expect a reimbursement of $620 for a two-bedroom unit in ZIP 51234 when a tenant uses a Section 8 voucher. This leaves a typical gap of $142 between the voucher reimbursement and the market rent, representing a surplus for the housing authority and a deficit for the landlord.
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.