Location: Osceola County, IA | Metro: Lyon County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,110 |
| 4 Bedrooms | $1,220 |
| 5 Bedrooms | $1,415 |
| 6 Bedrooms | $1,585 |
| 7 Bedrooms | $1,712 |
| 8 Bedrooms | $1,798 |
U.S. Census Bureau data (2024)
The ZIP code 51243 presents an interesting scenario when viewed from the renter's perspective. With a median income of $83,750, households here face significant challenges in affording the market rate rent of $608 per month, according to the Census ACS data. However, the situation becomes even more complex when comparing this to the federal payment standard of Fair Market Rent (FMR), which stands at $920 per month for the metro area in fiscal year 2026.
This creates a substantial affordability gap for typical renters. To put it into perspective, the median income suggests that the average household could comfortably allocate around $1,675 per month towards housing costs, assuming they spend 30% of their income on rent. Yet, the actual market rate is far below this figure, indicating that many renters might be overpaying relative to their income or underpaying compared to the FMR.
The low percentage of renters—only 10.9%—and a relatively small population of 735 individuals further complicate the rental landscape. This means that the competition among landlords for tenants is likely high, as there are fewer potential renters to serve a larger number of properties.
For landlords considering whether to accept Section 8 vouchers or opt for cash-paying tenants, the data points to a nuanced decision. While the market rate is lower than the median income would suggest is affordable, the FMR is significantly higher, potentially offering better financial stability through voucher programs. However, the limited pool of renters means that landlords who accept vouchers must ensure they meet the strict requirements set forth by the program to attract these tenants.
The takeaway for landlords is clear: while the market rate offers immediate affordability for tenants, the higher FMR associated with vouchers can provide a more stable long-term income. Landlords should weigh the benefits of voucher stability against the competitive pressure of a small rental market and the administrative complexities of participating in the Section 8 program.
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.