Location: Carroll County, IA | Metro: Audubon County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,170 |
| 4 Bedrooms | $1,290 |
| 5 Bedrooms | $1,496 |
| 6 Bedrooms | $1,676 |
| 7 Bedrooms | $1,810 |
| 8 Bedrooms | $1,901 |
U.S. Census Bureau data (2024)
A landlord considering purchasing a property in ZIP code 51463 for Section 8 purposes should follow this decision tree:
1) Does the Fair Market Rent (FMR) of $930 cover the debt service on a $219,081 property?
Yes: The FMR of $930 is sufficient to clear the debt service on a property valued at $219,081. This indicates that the rental income can support the mortgage payments.
No: The FMR of $930 does not cover the debt service on a property valued at $219,081. Therefore, a landlord would need to consider other sources of income or subsidies to make up for the shortfall.
It Depends: This scenario would apply if the landlord has a unique financing arrangement where the FMR might be sufficient depending on interest rates or loan terms. However, based on standard assumptions, the FMR does not typically cover the debt service on a property of this value.
2) Is the market rent above, at, or below the FMR?
Above: If the market rent exceeds the FMR, landlords will face challenges in finding tenants willing to pay the higher rent set by market conditions. They must decide whether to accept lower rents or wait for the FMR to rise.
At: If the market rent is equal to the FMR, the landlord can expect to find tenants without significant difficulty. The rental income aligns with the subsidy amount, making it easier to manage cash flow.
Below: If the market rent is below the FMR, landlords have a competitive advantage in attracting tenants. However, this also suggests that the area may have limited rental demand or lower overall economic activity.
Note: The market rent data for ZIP 51463 is currently not available (N/A).
3) Are 5.1% of renters combined with N/A days of Days on Market (DOM) indicative of sufficient demand?
Yes: A 5.1% share of renters indicates a moderate level of rental demand. However, the lack of DOM data makes it difficult to assess how quickly properties are rented out.
No: If the DOM is significantly high, it would suggest low demand despite the 5.1% share of renters. High DOM implies that properties take longer to rent, which could affect cash flow negatively.
It Depends: The decision hinges on the DOM data. With only 5.1% of renters, landlords should ensure that the DOM is reasonably low to maintain steady cash flow. Without specific DOM figures, it's challenging to provide a definitive answer.
In conclusion, while the FMR of $930 does not cover the debt service on a $219,081 property, the decision to invest in ZIP 51463 for Section 8 should be based on additional factors such as the actual market rent and the DOM. These metrics will provide a clearer picture of the demand and feasibility of the investment.
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.