Location: Howard County, IA | Metro: Chickasaw County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 52163 in Howard County, Iowa, reveals a unique set of conditions that impact both landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the area is set at $920 for the fiscal year 2026, which is intended to cover the cost of housing for voucher tenants. However, due to the lack of available market rent data, it's challenging to directly compare the FMR against current rental rates.
Based on the HUD FMR alone, voucher tenants would typically cashflow at the standard rate, meaning landlords would see minimal profit without factoring in additional expenses such as maintenance and vacancies. This suggests that landlords should expect to break even or have slim margins when relying solely on the FMR for rental income.
The median home value in ZIP 52163 stands at $125,943, which can be used to derive a rent-to-price ratio. Assuming a typical mortgage payment for a property valued at $125,943, including principal, interest, taxes, and insurance (PITI), the monthly cost would likely exceed the HUD FMR of $920. Therefore, landlords would need to ensure that their expenses are managed effectively to maintain profitability.
In ZIP 52163, the dynamics between renting and buying are influenced by the low median home value, making homeownership potentially more attractive than renting. However, the lack of specific data on days on market (DOM) and the percentage of price cuts indicates that the local real estate market may not be experiencing significant fluctuations, which could provide stability for both renters and buyers.
The strongest investor angle in this market is stability. Given the limited volatility suggested by the missing DOM and price-cut percentages, investors can expect consistent returns and a steady demand for rental properties. This makes ZIP 52163 an ideal location for those seeking a reliable investment with predictable outcomes.
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.