Location: Dickinson County, IA | Metro: Clay County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $880 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 51333 revolves around the discrepancy between the Fair Market Rent (FMR) set at $1,140 and the actual market rent of $1,097 for the fiscal year 2026. This represents a gap of $43, which is approximately 3.6% of the market rent. Given that the FMR exceeds the market rent, landlords and small-portfolio investors can leverage this situation to achieve higher yields.
The higher FMR compared to the market rent means that voucher tenants can afford to pay rents that are above what typical market-rate tenants would pay. In essence, landlords can collect rents closer to the FMR, thereby increasing their cash flow and overall investment returns. For instance, if a landlord sets the rent at $1,140, they can still attract tenants covered by the Section 8 program, ensuring steady income without the risk of vacancies that might occur at higher rates.
This ZIP code has a relatively low rental population at 7.9%, indicating a smaller pool of potential rental income. However, the median home value stands at $229,961, suggesting a moderate level of property appreciation potential. The median income of $110,833 further supports the idea that voucher tenants can contribute to a more stable and profitable rental environment. By accepting Section 8 vouchers, landlords can mitigate risks associated with defaulting on rent payments, given the government's guarantee to cover the rent up to the FMR.
In summary, the explicit gap between the FMR and market rent makes ZIP 51333 an attractive location for landlords who wish to capitalize on the yield opportunities presented by voucher tenants. Despite the low percentage of renters, the financial backing provided by the Section 8 program ensures a reliable source of income, aligning well with the financial metrics of the area.
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.