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 | $1,040 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,750 |
| 4 Bedrooms | $1,970 |
| 5 Bedrooms | $2,285 |
| 6 Bedrooms | $2,559 |
| 7 Bedrooms | $2,764 |
| 8 Bedrooms | $2,902 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,750 | $227,983 | 0.77% | D |
U.S. Census Bureau data (2024)
The ZIP code 51533 encompasses a small community with a total population of 844 individuals. Only 12.0% of the residents are renters, indicating a predominantly owner-occupied area. The median household income stands at $68,750, which suggests a middle-class community. Median home values in this ZIP code are relatively modest at $188,136, reflecting an affordable residential market.
From an investment perspective, the Fair Market Rent (FMR) for ZIP 51533 in fiscal year 2024 is set at $980. This figure is notably lower than the Census ACS-reported market rent of $1,034, creating a slight gap between the two rates. For hands-off Section 8 voucher operators, the lower FMR rate might present challenges in maintaining sufficient cash flow, given the higher actual market rents. However, for hands-on investors willing to manage properties and potentially add value through improvements, the discrepancy could offer opportunities to increase rental income above the FMR threshold while still serving eligible tenants.
In summary, ZIP 51533 is better suited for hands-on value-add buyers who can leverage the potential for property appreciation and higher-than-voucher rental rates. Such investors would benefit from the community's affordability and middle-income demographic, positioning them to capture additional value beyond the standard Section 8 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.