Location: Sioux County, IA | Metro: Lyon County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,360 |
| 5 Bedrooms | $1,578 |
| 6 Bedrooms | $1,767 |
| 7 Bedrooms | $1,908 |
| 8 Bedrooms | $2,003 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 51239 are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $920 per month for fiscal year 2026. This figure is crucial because it represents the maximum amount that the housing authority will pay to landlords participating in the program. It's important to note that the local market rent data is currently unavailable, making the SAFMR the key benchmark for understanding rental income in this area.
A landlord should be aware that the SAFMR does not represent the total rent a tenant will pay. Instead, it covers the portion that the government subsidizes. Tenants are required to contribute a percentage of their income towards rent, typically 30%, which can vary depending on the tenant's financial situation. For instance, if a tenant's monthly income is $1,500, they would be expected to pay $450 towards rent. The remaining $470 of the SAFMR ($920 - $450) would be paid by the housing authority.
In addition to the base rent, the housing authority also provides utility allowances. These allowances are designed to cover the cost of utilities such as electricity, water, and gas. However, the exact amount of these allowances is not specified in the provided data, so landlords should inquire directly with the local housing authority for precise figures. Utility allowances can add to the total reimbursement a landlord receives, but they do not affect the base rent limit set by the SAFMR.
To illustrate, let's assume a tenant's utility allowance is $100 per month. In this scenario, the landlord would receive $450 from the tenant and $470 from the housing authority, totaling $570 in monthly rent plus the $100 utility allowance. Therefore, the landlord would receive $670 per month, which is $250 less than the SAFMR of $920.
This discrepancy between the SAFMR and the actual reimbursement creates a reimbursement gap. In ZIP 51239, the typical reimbursement gap for a two-bedroom apartment is $250 per month, assuming the utility allowance is $100. This means landlords must accept a lower net income compared to the SAFMR when renting to tenants with Section 8 vouchers.
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.