Section 8 Fair Market Rent (FMR) for ZIP 52242 - 2027
Location: Iowa City, IA | Metro: Iowa City, IA HUD Metro FMR Area
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $990 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,710 |
| 4 Bedrooms | $2,070 |
| 5 Bedrooms | $2,401 |
| 6 Bedrooms | $2,689 |
| 7 Bedrooms | $2,904 |
| 8 Bedrooms | $3,049 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$N/A
To determine if you should invest in ZIP code 52242 for Section 8 properties, follow this decision tree based on the provided data:
- Does FMR $1100 (zip FY 2024) clear debt service on a property?
- If the debt service on a property in ZIP 52242 is less than $1100, then the answer is Yes. The Fair Market Rent (FMR) can cover your mortgage and other expenses.
- If the debt service exceeds $1100, then the answer is No. The FMR will not be sufficient to meet your financial obligations.
- Is market rent above, at, or below FMR?
- If the market rent is above $1100, then you have an opportunity to charge more than the FMR, which can provide additional income. This scenario suggests a Yes.
- If the market rent is exactly $1100, then you will be charging the FMR. This is neutral and the decision depends on other factors. This scenario suggests It Depends.
- If the market rent is below $1100, then you will likely be charging more than what most tenants can afford outside of Section 8, making it harder to find non-subsidized tenants. This scenario suggests a No.
- Are 100.0% renters + N/A-day DOM enough demand?
- If the days on market (DOM) is low, indicating quick turnover and high demand, then the answer is Yes. High demand means that there is a strong likelihood of finding tenants.
- If the DOM is high, suggesting slow turnover and low demand, then the answer is No. It would be challenging to maintain occupancy rates.
- If the DOM is moderate, then the answer is It Depends. You will need to consider other factors such as competition, vacancy rates, and tenant preferences to make a final decision.
The analysis of ZIP 52242 shows that if the debt service is covered by the FMR of $1100, and the market rent is either equal to or higher than the FMR, you can proceed with confidence. However, if the market rent is below the FMR, it signals a potential risk. Lastly, the demand for rentals is entirely dependent on how quickly properties are rented out, indicated by the DOM. A low DOM suggests strong demand, while a high DOM indicates the opposite.
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.