Location: Greene County, IA | Metro: Calhoun County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $880 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 51453 is centered around the discrepancy between the Fair Market Rent (FMR) set at $1,160 for the fiscal year 2026 and the actual market rent reported at $944 according to the Census ACS data. This gap amounts to $216 per month, representing a 22.9% difference between the two figures. Given that the FMR exceeds the market rent, it presents an opportunity for landlords and small-portfolio investors to participate in a yield play.
Voucher tenants under the Section 8 program can offer a stable and reliable source of income due to the government guaranteeing payment. The higher FMR allows landlords to receive a monthly rental payment that is above the typical market rate, thereby increasing their yield. For instance, if a landlord's property is renting for $944, they would be able to charge up to $1,160 through a Section 8 voucher without the risk of non-payment, thus enhancing profitability.
In ZIP 51453, where 31.0% of residents are renters, the median home value stands at $120,479 and the median income is $86,563. These figures provide important context for understanding the local housing market. With a significant portion of the population renting, there is a strong demand for affordable housing options. The Section 8 program can help meet this demand while offering landlords a way to capitalize on the financial support provided by the government.
However, participating in the Section 8 program also comes with certain administrative and regulatory responsibilities. Landlords must ensure compliance with HUD standards and undergo regular inspections. Despite these requirements, the potential to earn a higher rent than the open-market rate makes the Section 8 program attractive for investors looking to maximize returns in ZIP 51453.
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.