Location: Monona 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 | $770 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,300 | $202,896 | 0.64% | D |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 51558 is centered around the disparity between the Fair Market Rent (FMR) set at $980 for fiscal year 2024 and the actual market rent reported at $1,016 according to the latest Census ACS data. This creates a gap of $36, which translates to approximately 3.7% when calculated against the market rent figure.
Given that the FMR is lower than the market rent, landlords and small-portfolio investors should be aware of the financial implications of accepting housing vouchers. Voucher tenants pay only a portion of their income towards rent, with the rest subsidized by the government. In ZIP 51558, where the median income is $77,417, voucher tenants might be paying significantly less than the open-market rate, thus reducing potential rental yields.
The median home value in the area is $169,830, indicating that the overall real estate market is moderately priced. However, with only 9.7% of residents classified as renters, competition for rental properties can be fierce, potentially leading to higher vacancy rates for those not participating in the Section 8 program. This suggests that landlords may need to carefully consider the trade-offs between accepting lower rents via vouchers and the risk of prolonged vacancies.
To summarize, the gap between the FMR and market rent in ZIP 51558 represents a direct financial impact on landlords. While the subsidy ensures stable and timely rent payments, it also means that landlords will receive less than the market rate, which could affect the profitability of their investments. For small-portfolio investors, this may mean a lower net income per unit compared to renting out properties at market rates without vouchers.
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.