Location: Osceola County, IA | Metro: Lyon County, IA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,220 |
| 5 Bedrooms | $1,415 |
| 6 Bedrooms | $1,585 |
| 7 Bedrooms | $1,712 |
| 8 Bedrooms | $1,798 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $930 | $118,540 | 0.78% | D |
| 3BR | $1,210 | $186,067 | 0.65% | D |
| 4BR | $1,220 | $240,069 | 0.51% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 51249, which includes Sibley, Iowa, in Osceola County, can be straightforward when understood correctly. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $920. This figure is specific to this ZIP code and reflects the fair market rent determined by HUD for the area.
Local market rents, as reported by the Census American Community Survey (ACS), run at $774 for a similar two-bedroom unit. This discrepancy between the SAFMR and the actual market rent suggests that landlords participating in the Section 8 program in this ZIP code may receive slightly higher rental payments compared to the general market.
A landlord's income from a Section 8 voucher is calculated based on the SAFMR, but it's important to understand how the total payment breaks down. The voucher pays the difference between the market rent and the tenant's portion, which is typically 30% of their adjusted income. For example, if a tenant's portion is $276 (based on a hypothetical income of $920 per month), then the voucher would cover the remaining $644 of the $920 SAFMR. However, the actual market rent is $774, so the landlord would receive an additional $130 from the tenant's portion to make up the difference.
In addition to covering the rent, Section 8 vouchers also include utility allowances. These allowances vary by location and household size but are designed to help cover the cost of utilities. In ZIP 51249, the utility allowance for a two-bedroom unit might be around $200 per month, though this figure can change based on the specifics of the household and the region.
To summarize, a landlord in ZIP 51249 can expect the following reimbursement structure for a two-bedroom unit: $644 from the voucher, plus the tenant's portion of $276, totaling $920. Given the local market rent of $774, this results in a surplus of $146 per month for the landlord. This surplus is due to the higher SAFMR compared to the actual market rent, making participation in the Section 8 program financially beneficial for landlords in this area.
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.