Location: Tama County, IA | Metro: Poweshiek 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 | $710 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,350 |
| 5 Bedrooms | $1,566 |
| 6 Bedrooms | $1,754 |
| 7 Bedrooms | $1,894 |
| 8 Bedrooms | $1,989 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $970 | $250,644 | 0.39% | F |
| 3BR | $1,260 | $261,746 | 0.48% | F |
U.S. Census Bureau data (2024)
The ZIP code 52215, encompassing Chelsea, Iowa, presents a unique challenge for renters and landlords alike. The median household income here stands at $61,932, which is crucial when assessing rental affordability.
Unfortunately, the market rate for rentals in Chelsea, IA is currently unavailable, making it difficult to directly compare against the median income. However, we can analyze the situation using the Fair Market Rent (FMR) as a benchmark. For the metro area in fiscal year 2026, the FMR is set at $960 per month, which represents the maximum amount that a Section 8 housing voucher would cover.
Given the low percentage of renters at just 1.1%, and a total population of 960, the rental market in Chelsea is relatively small. This means that landlords face less competition compared to larger urban areas. However, the scarcity of renters also implies a limited pool of potential tenants, making it essential for landlords to consider the financial capabilities of their local market.
Assuming a typical household spends around 30% of their income on housing, a household earning the median income of $61,932 would allocate approximately $1,548 monthly towards rent. This suggests that the FMR of $960 is well below the affordable range for most households based on their income levels.
The takeaway for landlords considering voucher versus cash-pay strategies is clear. While vouchers offer guaranteed payments, the cap at $960 may not be as financially beneficial as renting to cash-paying tenants who can afford higher rates. Landlords should weigh the stability of voucher payments against the potential for higher revenue from non-voucher tenants.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.