Location: Montgomery County, IA | Metro: Omaha-Council Bluffs, NE-IA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $890 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,510 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
U.S. Census Bureau data (2024)
ZIP code 51541, located within the Montgomery County, IA metro area, can serve as a cash-flow anchor in a Section 8 portfolio strategy. The Federal Market Rent (FMR) for ZIP 51541 in fiscal year 2024 is set at $980, which provides a stable baseline for rental income. While the market rent data is currently unavailable, the FMR figure offers a reliable estimate that landlords can use to ensure consistent cash flow.
The median home value in ZIP 51541 stands at $185,045, indicating a relatively affordable housing market. This makes it easier for landlords to acquire properties without a significant capital outlay, while still receiving a guaranteed rental income through the Section 8 program. The spread between the FMR and the median home value suggests that the rental income will be sufficient to cover mortgage payments, property taxes, insurance, and maintenance costs, leaving a positive cash flow.
ZIP 51541 is not an ideal appreciation play due to the lack of specific data on price-cut shares and days on market (DOM). However, the focus on cash flow stability makes it a strong candidate for a portfolio designed to generate reliable income. The median income in the area is $91,875, which is above the national average, providing a solid economic foundation for the demand of rental properties.
The renter share of 3.0% indicates that a smaller portion of the population is renting compared to owning homes. This lower renter share might limit the pool of potential tenants, but it also means that landlords can attract tenants who are committed to the Section 8 program, reducing turnover and vacancy rates.
In summary, ZIP 51541 is best suited as a cash-flow anchor in a Section 8 portfolio strategy. Landlords can expect steady income with minimal risk of vacancy or default, thanks to the guaranteed FMR of $980 and the economic stability provided by the median income level of $91,875. Although the area does not offer high potential for property appreciation, it ensures a predictable and sustainable revenue stream.
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.