Location: Iowa 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 | $750 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $136,112 | 0.74% | D |
| 3BR | $1,390 | $200,148 | 0.69% | D |
| 4BR | $1,680 | $236,752 | 0.71% | D |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP 52301, Marengo, Iowa, for fiscal year 2024 is set at $860. This figure represents the maximum amount that a landlord can receive from the Housing Choice Voucher program, commonly known as Section 8, for renting a unit to a tenant who qualifies for assistance. It's important to note that this is not the rent you will charge your tenants; rather, it's the reimbursement limit from the government.
In comparison, the average rent in ZIP 52301 is currently listed at $730 according to recent Census American Community Survey data. This means that if you participate in the Section 8 program, you might be receiving slightly more than the market average, but not significantly so. The difference between the FMR and the actual market rate indicates that the program aims to ensure affordable housing without overpaying landlords.
The 22.9% share of renters in the area suggests a steady demand for rental properties. If you're looking to acquire a property in ZIP 52301, the median home value stands at $185,832, providing insight into the typical cost of a property in the area. This can help you assess whether a potential investment aligns with your budget and financial goals.
Before deciding to enroll in the Section 8 program, verify that your property meets all the required standards for habitability and safety. These standards include ensuring the property is free from health and safety hazards, such as lead paint, mold, and structural issues. This verification process is crucial because failing to meet these standards can result in penalties and loss of rental income.
Participating in Section 8 can offer a reliable source of income, though it comes with the responsibility of maintaining your property to high standards. With the FMR at $860, you can expect a consistent monthly payment, assuming your property is rented out. However, the true profitability of your investment will depend on your costs, including mortgage payments, utilities, maintenance, and insurance.
While the local rent average is lower at $730, the Section 8 program offers a predictable income stream, which can be beneficial for small-portfolio investors. Given the 22.9% renter share, there is a reasonable demand for rental properties in the area, making it a viable option for those interested in Section 8 rentals.
To summarize, the FMR of $860 sets the ceiling for government reimbursement, while the local average rent of $730 provides context for the market. A 22.9% renter share signals a moderate demand, and the median home value of $185,832 gives an idea of the acquisition cost. Before investing, ensure your property complies with all necessary standards to avoid future complications.
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.