Section 8 Fair Market Rent (FMR) for ZIP 52001 - 2027

Investment Score for ZIP 52001

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$790
1 Bedroom	$900
2 Bedrooms	$1,140
3 Bedrooms	$1,530
4 Bedrooms	$1,880
5 Bedrooms	$2,181
6 Bedrooms	$2,443
7 Bedrooms	$2,638
8 Bedrooms	$2,770

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$900	$127,823	0.7%	D
2BR	$1,140	$173,879	0.66%	D
3BR	$1,530	$222,690	0.69%	D
4BR	$1,880	$264,169	0.71%	D
5BR	$2,181	$328,943	0.66%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 52001 (Dubuque, IA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 52001, as determined by HUD for 2026, is set at $1,080 for a two-bedroom unit. This represents 21.0% of the median household income of $61,643. However, the actual median rent for a two-bedroom unit on Zillow is $168,944, which translates to a price-to-FMR ratio of 13.0x. This means that the actual median home value is significantly higher than the FMR, indicating that many units in this area are not affordable for Section 8 voucher holders. The constraints for voucher holders are clear: they can only afford units that cost up to $1,080 per month, which is far below the median market price. #### Affordability & Renter Profile ZIP code 52001 has a population of 43,101, with 37.3% of residents being renters. This suggests a significant rental market, but the high price-to-FMR ratio indicates that the market is tight and not very affordable for low-income renters. Given that the median household income is $61,643, the average renter would likely struggle to find a two-bedroom unit within their budget if they were relying solely on the Section 8 voucher. The occupancy rate of 93.3% further supports the notion that the rental market is competitive, with few vacant units available. #### Investor Angle From an investor perspective, the ZIP code 52001 presents a challenging scenario for cash flow positivity when targeting properties for Section 8 tenants. The FMR for a two-bedroom unit is $1,080, while the median home value is $168,944. This implies that the majority of homes in this ZIP code are priced well above the FMR, making it difficult to find properties that can be rented out at FMR rates and still generate positive cash flow. Additionally, the high price-to-FMR ratio of 13.0x suggests that the investment grade for this area is relatively low, especially for those focusing on Section 8 vouchers. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider smaller units such as one-bedroom apartments, where the FMR is $840. This is still a significant portion of the median income ($61,643), but it might be easier to find units within this price range that are affordable for Section 8 voucher holders. 2. **Explore Subsidized Housing Options**: Investors interested in the Section 8 market could look into properties that are already part of subsidized housing programs or seek additional subsidies to make their investments more viable. This would help bridge the gap between the high median home values and the lower FMRs. #### Bottom Line For Section 8-focused investors, the ZIP code 52001 (Dubuque, IA) is not recommended for purchase due to the high price-to-FMR ratio and the limited number of units that fall within the FMR range. The tight rental market and high occupancy rate suggest that finding properties that can be rented out at FMR rates will be difficult. Therefore, the recommendation is to **skip** this ZIP code for now and consider other areas with a more favorable price-to-FMR ratio and a larger pool of affordable units.

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.