Location: Dickinson County, IA | Metro: Clay 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 | $790 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,370 |
| 5 Bedrooms | $1,589 |
| 6 Bedrooms | $1,780 |
| 7 Bedrooms | $1,922 |
| 8 Bedrooms | $2,018 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $800 | $260,772 | 0.31% | F |
| 2BR | $1,040 | $268,512 | 0.39% | F |
| 3BR | $1,360 | $364,170 | 0.37% | F |
| 4BR | $1,370 | $497,704 | 0.28% | F |
| 5BR | $1,589 | $669,955 | 0.24% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP 51351, West Okoboji, IA, within Dickinson County, are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $1,040 per month for fiscal year 2026. This SAFMR figure is specific to this ZIP code, reflecting the unique rental market conditions in West Okoboji.
In contrast, the local market rent for a two-bedroom unit, according to Census ACS data, is $906 per month. This indicates that the SAFMR is higher than the actual market rent, which can be advantageous for landlords participating in the program.
A Section 8 voucher pays a significant portion of the rent directly to the landlord on behalf of the tenant. In ZIP 51351, the reimbursement is based on the SAFMR of $1,040. However, the total amount paid by the Housing Authority includes both the tenant's contribution and any applicable utility allowances. The tenant's portion is typically 30% of their adjusted income, and utility allowances vary but are generally around $200-$300 per month.
To illustrate, if a tenant has an adjusted income of $2,000 per month, they would contribute 30% of that, or $600, towards rent. With a utility allowance of $250, the total reimbursement to the landlord would be:
$600 (tenant contribution) + $250 (utility allowance) = $850
This calculation leaves a gap between the SAFMR and the total reimbursement. For a two-bedroom apartment, the gap would be:
$1,040 (SAFMR) - $850 (total reimbursement) = $190
This means landlords would receive $190 less than the SAFMR per month, resulting in a reimbursement gap. However, since the local market rent is $906, the landlord still receives slightly above the average market rate despite the gap.
In summary, landlords in ZIP 51351 who participate in the Section 8 program will receive a total reimbursement of around $850 for a two-bedroom apartment, leaving a gap of $190 compared to the SAFMR. Nonetheless, this reimbursement is above the local market rent, providing a slight surplus.
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.