Location: Fayette County, IA | Metro: Fayette County, IA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 52166 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent, which is currently unavailable. However, the FMR for the metro area in fiscal year 2026 is set at $1,090. This figure is crucial because it directly impacts the viability of rental properties under the Section 8 program.
Given that the market rent is not available, we can only work with the FMR to understand the dynamics. In ZIP 52166, where 4.1% of the population are renters and the median household income stands at $110,938, landlords must consider the implications of renting to Section 8 voucher holders. The FMR of $1,090 represents the maximum amount that the federal government will pay toward a tenant's rent, based on the local housing market conditions. If the market rent were known and lower than the FMR, the gap would indicate a yield play for landlords. They could potentially charge a rate higher than what they might receive from non-voucher tenants, thereby increasing their net income per unit.
However, if the market rent were to exceed the FMR, which is the likely scenario given the median income levels, landlords would face a cost of housing voucher tenants below open-market rates. For example, if the market rent were hypothetically $1,500, the landlord would only receive $1,090 from the government for a voucher tenant, creating a shortfall of $410 per month. This shortfall translates into a significant percentage of the total rent, approximately 27.3%, which could impact the profitability of the investment.
In conclusion, the decision to participate in the Section 8 program in ZIP 52166 should be carefully weighed against the potential market rent. Landlords must ensure that the benefits of stable, government-backed rental payments outweigh the costs associated with renting below market rates. The analysis underscores the importance of understanding local rental market conditions before making an investment 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.