Location: Lyon County, IA | Metro: Lyon County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $700 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,130 |
| 4 Bedrooms | $1,240 |
| 5 Bedrooms | $1,438 |
| 6 Bedrooms | $1,611 |
| 7 Bedrooms | $1,740 |
| 8 Bedrooms | $1,827 |
U.S. Census Bureau data (2024)
13.4% of the residents in ZIP code 51242 are renters, indicating a moderate demand for rental properties in the area. The Fair Market Rent (FMR) for ZIP 51242, as determined by HUD for metro fiscal year 2026, is set at $940, which represents the maximum allowable rent for a Section 8 voucher holder. Despite the median home value being significantly higher at $276,896, the FMR provides a clear guideline for rental pricing in compliance with Section 8 requirements.
$95,625 is the median income for the area, suggesting that while the local economy supports homeownership, there remains a segment of the population reliant on rental assistance programs such as Section 8. The absence of data regarding days on market (DOM) and the percentage of homes needing price cuts indicates a stable housing market, without significant fluctuations or oversupply issues that could affect rental property values.
In ZIP 51242, landlords and small-portfolio investors should consider setting their rental rates close to the $940 FMR to attract Section 8 tenants. This approach aligns with the economic realities of the area, ensuring both affordability for tenants and viability for landlords. Given the median income of $95,625, there is a reasonable likelihood that non-assisted rentals can command higher rates, potentially balancing out any lower margins associated with Section 8 participation.
The verdict on Section 8 for ZIP 51242 is positive, with the established FMR and moderate renter share making it a viable option for expanding rental offerings and serving a broader tenant base.
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.