Location: Carroll County, IA | Metro: Carroll 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 | $800 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,170 |
| 4 Bedrooms | $1,240 |
| 5 Bedrooms | $1,438 |
| 6 Bedrooms | $1,611 |
| 7 Bedrooms | $1,740 |
| 8 Bedrooms | $1,827 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $930 | $200,972 | 0.46% | F |
| 3BR | $1,170 | $222,656 | 0.53% | F |
| 4BR | $1,240 | $258,712 | 0.48% | F |
| 5BR | $1,438 | $339,505 | 0.42% | F |
U.S. Census Bureau data (2024)
The median household income in ZIP code 51401, which includes Carroll, Iowa, stands at $70,702 according to recent Census Bureau data. The market rate for rent in this area is $726, based on the same source. This means that a typical household in Carroll would find it challenging to cover the market rent, especially when considering other living expenses and financial obligations.
Comparatively, the Fair Market Rent (FMR) set by HUD for the metro area for fiscal year 2026 is $920. This figure represents the maximum amount that a Section 8 voucher holder can pay towards their rent. However, the market rate being below the FMR suggests that voucher holders might have an easier time finding affordable housing options in Carroll, as the difference between the market rate and the FMR is substantial.
With 26.3% of the population renting and a total population of 11,990, there is a notable segment of the community seeking rental properties. The affordability gap between the median income and the market rent indicates that many renters might lean towards subsidized housing options to manage their costs effectively. This trend could increase competition among landlords who accept Section 8 vouchers, as they become more attractive to potential tenants struggling to meet the market rates.
The takeaway for landlords considering their strategy in ZIP 51401 is clear: accepting Section 8 vouchers can provide a steady stream of tenants but comes with a lower rental income compared to market rates. Landlords should weigh the benefits of guaranteed payments against the lower rents when deciding whether to participate in the voucher program or focus on cash-paying tenants who might be willing to pay closer to the market rate despite the income constraints.
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.