Location: Fremont 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 | $910 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,190 | $179,550 | 0.66% | D |
| 3BR | $1,620 | $249,570 | 0.65% | D |
| 4BR | $1,720 | $307,546 | 0.56% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 51653, which encompasses Tabor in Fremont County, Iowa, can be clearly defined using specific figures. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2024 is set at $980. This figure is crucial because it represents the maximum amount that a landlord can receive from the government for a Section 8 voucher tenant in this specific ZIP code.
Local market rents for a two-bedroom apartment in ZIP 51653 run at $295 according to the latest Census ACS data. This discrepancy between the SAFMR and the actual market rent indicates a significant opportunity for landlords to secure rental income that is higher than the local average when accepting Section 8 vouchers.
A Section 8 voucher pays a substantial portion of the rent directly to the landlord, with the remainder coming from the tenant. In ZIP 51653, the tenant's portion of the rent is typically 30% of their adjusted income. Utility allowances are also part of the compensation structure, but these vary based on individual circumstances and cannot be generalized without specific tenant details. However, for simplicity, let’s assume an average utility allowance of $150 per month.
To illustrate the financial impact, consider a scenario where the SAFMR is fully utilized. If a landlord charges $980 for a two-bedroom unit, the government would cover the majority of this cost. Assuming the tenant's share is $295, the landlord receives $685 from the government plus the tenant's $295, totaling the $980. This arrangement ensures that the landlord is paid the SAFMR amount, which is significantly above the local market rent.
The typical reimbursement gap or surplus in this case would be a surplus, as the landlord receives a total of $980 for a unit that would otherwise rent for $295 in the local market. Therefore, landlords in ZIP 51653 can expect a surplus of $685 per month over the local market rent for a two-bedroom apartment when participating in the Section 8 program.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.