Section 8 Fair Market Rent (FMR) for ZIP 52099 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 housing in ZIP code 52099, located in Dubuque County, Iowa, are straightforward when you understand how the subsidy works. The SAFMR (Section 8 Moderate Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2024 is set at $940. This figure is specific to this ZIP code and reflects the maximum amount that HUD (Housing and Urban Development) will pay toward the rent of a unit in this area.

To break down the actual payment process, consider that the tenant is responsible for paying 30% of their adjusted income toward the rent. For simplicity, let's assume a tenant's adjusted income is $1,000 per month. In this case, the tenant would contribute $300 toward the rent. The remaining amount up to the SAFMR of $940 would be covered by the Section 8 voucher program.

However, it's important to note that the SAFMR does not include utilities. Landlords often wonder about utility allowances, which can vary but are typically around $100 to $200 per month. If we apply an average utility allowance of $150, this amount would be paid directly to the tenant to cover their utility expenses.

In summary, if the SAFMR is $940 and the tenant contributes $300, the voucher program would reimburse the landlord $640. Adding the utility allowance of $150, the total reimbursement would be $790. This leaves a gap of $150 between the SAFMR and the actual reimbursement received by the landlord.

Given the local market rent data is currently unavailable, it's crucial for landlords to compare the SAFMR and the reimbursement they receive against the prevailing rental rates in their neighborhood. If the market rent is higher than $940, landlords might face a larger gap between the SAFMR and the market rent, resulting in a potential loss. Conversely, if the market rent is lower, landlords could benefit from a smaller gap or even a surplus.

For landlords in ZIP 52099, understanding these specifics is key to managing expectations and making informed decisions about accepting Section 8 tenants. The typical reimbursement gap for a two-bedroom apartment is $150, based on the assumptions outlined above.

Data Sources: FMR data from HUD (2027).

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.