Location: Delaware County, IA | Metro: Delaware County, IA
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 | $690 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,120 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $930 | $199,680 | 0.47% | F |
| 3BR | $1,120 | $246,376 | 0.45% | F |
| 4BR | $1,550 | $315,580 | 0.49% | F |
| 5BR | $1,798 | $433,760 | 0.41% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 52057, which encompasses Manchester, Iowa, stands at $69,635. Given the market rate rent of $752 per month, as reported by the Census Bureau's American Community Survey (ACS), it becomes evident that affording housing is a challenge for many residents. This market rate already represents a significant portion of the average household's monthly income, approximately 28% when considering a 12-month period.
To further contextualize the affordability issue, let's examine the Fair Market Rent (FMR) standards set for the fiscal year 2026, which amount to $920 per month. This figure exceeds the current market rate by $168, indicating that the local rental market is somewhat below the federally determined fair market level. However, for households relying on Section 8 vouchers, the $920 FMR sets a benchmark for what they can be expected to pay, which is still higher than the typical market rate.
In Manchester, with a total population of 8,193 and 26.0% of those being renters, the competition among landlords is relatively low compared to densely populated urban areas. The smaller pool of renters means that landlords have fewer potential tenants to choose from, making it crucial to understand the financial capabilities of their target demographic.
The takeaway for landlords considering whether to accept Section 8 vouchers or focus on cash-paying tenants is clear. While voucher holders provide a guaranteed source of income through government subsidies, the higher rent they can cover ($920) might exceed the current market rate ($752). Landlords should weigh the benefits of steady payments against the potential for slightly higher revenue from cash-paying tenants who can afford the FMR. In a competitive market with limited rental options, accepting vouchers could be a strategic move to secure occupancy rates and tap into a reliable income stream.
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.