Location: Dickinson County, IA | Metro: Dickinson 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 | $810 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,070 | $356,028 | 0.3% | F |
| 3BR | $1,400 | $508,120 | 0.28% | F |
| 4BR | $1,410 | $646,437 | 0.22% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 51331, Iowa, stands at $89,167. This figure provides a baseline for understanding the financial capabilities of households in this area. When considering the market rate for rent, which is $497 according to Census ACS data, it becomes evident that the majority of households have the potential to comfortably cover their housing costs without significant strain on their budget.
In contrast, the Fair Market Rent (FMR) set for metro areas for fiscal year 2026 is $1,070, which is significantly higher than the actual market rate. This disparity suggests that the voucher payment standard might be more generous than necessary for the local rental market, providing an opportunity for landlords who accept vouchers to potentially receive higher payments than they would from market-rate tenants.
With only 10.7% of the 935 population being renters, competition among landlords in ZIP 51331 is relatively low. However, this also means that there is a limited pool of potential tenants, making it crucial for landlords to consider both voucher and cash-paying strategies to maximize occupancy and income stability.
The affordability gap between the median income and the market rate rent indicates that most renters could afford to pay the actual market rate, suggesting that landlords should carefully weigh the benefits of accepting vouchers against the ease of collecting rent directly from tenants. Accepting vouchers can ensure steady rental income but comes with additional administrative requirements and possibly lower turnover rates. On the other hand, relying solely on cash-paying tenants could lead to higher immediate returns but also greater risk if the tenant base is unable to consistently meet rental obligations.
Takeaway: Landlords in ZIP 51331 should consider a balanced approach, accepting vouchers to tap into federal subsidies while also maintaining flexibility to cater to cash-paying tenants. This strategy will help them navigate the local rental market effectively, ensuring stable occupancy and income.
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.