Location: Shelby County, IA | Metro: Omaha-Council Bluffs, NE-IA HUD Metro FMR Area
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 | $860 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,090 | $134,674 | 0.81% | C |
| 3BR | $1,450 | $210,984 | 0.69% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP 51529, which encompasses Dunlap, IA, and parts of Harrison County, hinge on understanding the SAFMR (Small Area Fair Market Rent) and how it interacts with the local rental market. For fiscal year 2024, the SAFMR for a two-bedroom apartment in this ZIP code is set at $980. This figure represents the maximum amount that the Section 8 program will pay towards rent for eligible tenants in this specific area.
In contrast, the local market rent for a two-bedroom apartment, based on Census ACS data, averages $902. This lower market rate suggests that landlords participating in the Section 8 program can expect their rental income to be slightly above the average market rate, assuming they charge the SAFMR.
When a tenant uses a Section 8 voucher, they are responsible for paying a portion of the rent themselves, typically around 30% of their adjusted income. The remaining balance is covered by the housing authority up to the SAFMR limit. Additionally, there are utility allowances which vary but generally cover some of the tenant's monthly utility costs. These allowances do not affect the total rent paid by the tenant and the housing authority but ensure that the tenant has funds available for utilities.
To illustrate, if a landlord charges $980 for a two-bedroom unit, and the tenant's portion of the rent is $294 (assuming an adjusted income of $980), then the housing authority would pay the difference, which is $686. This calculation assumes the tenant’s income is exactly at the level where they contribute 30%, and the rest is subsidized by the government.
However, if the market rent is $902 and the landlord decides to charge this rate, the tenant would still pay their 30% contribution, while the housing authority would cover the rest up to the SAFMR. In this scenario, the housing authority would reimburse the landlord $686, leaving the landlord with a total income of $980 ($294 from the tenant + $686 from the housing authority).
This means that in ZIP 51529, landlords who participate in the Section 8 program for a two-bedroom apartment will receive a reimbursement that aligns with the SAFMR of $980. Given the local market rent of $902, landlords would effectively see a surplus of $78 per month over the market rate, assuming the tenant's portion remains consistent with the SAFMR.
The key takeaway for landlords and small-portfolio investors is that the SAFMR provides a guaranteed floor for rental income, ensuring it does not fall below $980 for a two-bedroom unit in ZIP 51529. This can be particularly beneficial in areas where market rents are lower, as it offers a buffer against potential losses due to lower market rates.
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.