Location: Delaware County, IA | Metro: Dubuque, IA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $840 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,200 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,980 |
| 5 Bedrooms | $2,297 |
| 6 Bedrooms | $2,573 |
| 7 Bedrooms | $2,779 |
| 8 Bedrooms | $2,918 |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 52040 (Dyersville, IA) for Section 8 purposes, follow these steps:
Step 1: Can the Fair Market Rent (FMR) of $880 cover the debt service on a property valued at $282,267?
If Yes: The FMR of $880 is sufficient to meet the debt service requirements for a property costing $282,267. This means that the rental income from a Section 8 tenant would be enough to cover the mortgage payments and other related expenses.
If No: The FMR of $880 is insufficient to cover the debt service on a property valued at $282,267. You should consider properties with lower values or higher FMRs to ensure that rental income can cover the necessary expenses.
Step 2: How does the market rent of $1,097 compare to the FMR?
If Above: The market rent of $1,097 is higher than the FMR of $880, indicating that non-Section 8 tenants might be willing to pay more. This could mean that focusing on Section 8 tenants alone might not maximize your potential rental income.
If At: The market rent of $1,097 is roughly equal to the FMR of $880. This suggests that there's little difference between what a Section 8 tenant would pay and what the market would bear, making Section 8 a viable option without significant loss of income.
If Below: The market rent of $1,097 is below the FMR of $880, which is unlikely given the numbers. However, if this were the case, it would suggest that Section 8 rents are more competitive than the local market rates, potentially making it an attractive option for landlords.
Step 3: Is the combination of 17.3% of residents being renters and the unknown days on market (DOM) indicative of sufficient demand?
If Yes: With 17.3% of residents renting and a reasonable DOM, there is enough demand to justify investing in Section 8 properties. This percentage indicates a steady rental market where Section 8 units can find tenants.
If No: The 17.3% rental rate combined with an unknown DOM suggests uncertainty about demand. Without knowing how long properties typically stay on the market, it's difficult to assess whether there will be a consistent need for Section 8 housing.
If It Depends: The 17.3% rental rate is moderate, but the lack of DOM data makes it challenging to predict demand accurately. You'll need to research further into the local real estate market trends to make an informed decision.
In summary, if the FMR of $880 covers the debt service for a property valued at $282,267, and the market rent of $1,097 is above or at the FMR, then ZIP 52040 is a suitable location for Section 8 investments. However, the unknown DOM complicates the assessment of demand. Further investigation into the local rental market trends is recommended before making a final decision.
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.