Location: Montgomery 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 | $750 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,400 | $168,949 | 0.83% | C |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 landlord in ZIP code 51532 are significant and must be carefully considered. Tenant turnover is a critical issue, with market rent set at $817 versus the Federal Market Rent (FMR) of $980 for fiscal year 2024. This discrepancy can lead to frequent changes in occupancy, increasing administrative burdens and operational costs. Vacancy exposure is another concern, as the days on market (DOM) is listed as N/A, which indicates either a lack of available data or an unusually quick turnover rate that could suggest difficulty in maintaining consistent tenancy. Additionally, the deferred maintenance exposure is notable, given the typical home value of $152,999 and the median household income of $65,375. The lower income levels may result in higher maintenance needs being unmet by tenants, placing the burden on the landlord to ensure the property remains in good condition.
However, these risks are tempered by the high concentration of renters in the area, with 23.1% of the population renting their homes. High renter density typically correlates with a greater demand for housing vouchers, making it easier to find eligible tenants willing to use Section 8 vouchers. This demand can help stabilize occupancy rates and reduce the likelihood of extended vacancies.
In conclusion, the risks associated with becoming a first-time Section 8 landlord in ZIP code 51532 are moderate. While there are challenges related to tenant turnover and maintenance, the strong rental market provides a counterbalance that supports a stable investment environment.
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.