Section 8 Fair Market Rent (FMR) for ZIP 52039 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 52039

• City of Dubuque (Dubuque, IA) - 1,125 Section 8 vouchers
• Eastern Iowa Regional Housing Authority (Dubuque, IA) - 1,078 Section 8 vouchers

A decision tree for evaluating ZIP 52039 for Section 8 investments starts with the Fair Market Rent (FMR) of $940 for fiscal year 2024. This figure is crucial for determining if the investment aligns with your financial goals.

Step 1: Can the FMR of $940 cover the debt service on a property valued at $393,209?

• If yes, proceed to Step 2. The FMR must be sufficient to ensure that rental income meets the mortgage payments and other expenses associated with owning the property.
• If no, do not invest. A property priced at $393,209 would require a higher FMR to meet the necessary debt service coverage ratio, typically aiming for a minimum of 1.15x the total monthly debt service.

Step 2: What is the relationship between the FMR and the market rent?

• If market rent is above $940, consider the property's potential for higher returns outside of Section 8. However, this does not directly impact the suitability for Section 8 tenants.
• If market rent is at or below $940, continue to Step 3. This indicates that the FMR is competitive with the local rental market, making Section 8 an attractive option for landlords.

Step 3: Evaluate the demand factors: 7.6% of renters and N/A days on the market (DOM).

• If there is significant demand (7.6% of renters) and the DOM is low, indicating quick turnover, then the answer is yes. There is enough demand to fill vacancies promptly.
• If the demand is marginal and DOM is high, the answer is no. High DOM suggests that properties may remain vacant longer, reducing cash flow.
• If demand is moderate but DOM is unknown, the answer is it depends. More research into vacancy rates and tenant preferences is needed to make a definitive decision.

The analysis of ZIP 52039 for Section 8 investments hinges on these three steps. Each step provides a clear path to either investing or not based on the financial and market conditions specific to this zip code.

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.