Location: Benton County, IA | Metro: Benton County, IA HUD Metro FMR Area
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 | $820 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,520 | $212,087 | 0.72% | D |
| 4BR | $1,550 | $289,254 | 0.54% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking at ZIP code 52249 might have several concerns regarding the feasibility of investing in properties here under the Section 8 program. Let's break down these concerns and address them with the available data.
Objection 1: Will Fair Market Rent (FMR) of $1050 cover the mortgage on a $302,712 home?
The Fair Market Rent (FMR) for ZIP 52249 is set at $1050 for fiscal year 2024. This figure represents the maximum amount that HUD will pay for rental units in this area. To determine if this covers the mortgage, we need to consider the mortgage rate and term length. Assuming a 30-year fixed-rate mortgage at an average interest rate of 5%, the monthly payment on a $302,712 home would be approximately $1650. At first glance, the FMR does not fully cover this mortgage cost. However, landlords can also benefit from appreciation in property value, tax benefits, and other sources of income such as parking fees or utilities to offset the gap.
Objection 2: Is there enough renter demand at 19.0%?
The percentage of renter-occupied housing units in ZIP 52249 is 19.0%. This figure suggests a relatively low proportion of renters compared to homeowners. However, it's important to note that the Section 8 program targets those who are most in need of affordable housing. The demand for subsidized housing tends to remain steady regardless of overall rental market conditions. Additionally, the percentage of renters does not directly correlate to the number of potential Section 8 tenants, which is influenced by factors such as local unemployment rates, public assistance programs, and the availability of affordable housing options.
Objection 3: Will vouchers keep pace with $892 market rents?
The market rent in ZIP 52249 is currently at $892 per month. While the FMR is higher at $1050, landlords must ensure that their rent pricing aligns with the voucher amounts. If the vouchers are consistently below the market rent, landlords may face challenges in attracting tenants. However, the FMR is designed to reflect a reasonable estimate of what a landlord should expect to receive. It's worth noting that HUD periodically adjusts FMRs based on changes in the local housing market, so keeping an eye on these adjustments is crucial for maintaining a competitive edge while still being within the allowable limits.
In conclusion, while the data presents some challenges, particularly in covering mortgage costs and ensuring renter demand, the Section 8 program offers a stable source of income and access to a consistent pool of tenants. Landlords and investors should carefully weigh these factors against their financial goals and risk tolerance.
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.