Section 8 Fair Market Rent (FMR) for ZIP 52302 - 2027

Investment Score for ZIP 52302

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$720
1 Bedroom	$790
2 Bedrooms	$1,030
3 Bedrooms	$1,430
4 Bedrooms	$1,720
5 Bedrooms	$1,995
6 Bedrooms	$2,234
7 Bedrooms	$2,413
8 Bedrooms	$2,534

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,030	$194,275	0.53%	F
3BR	$1,430	$264,171	0.54%	F
4BR	$1,720	$358,547	0.48%	F
5BR	$1,995	$481,693	0.41%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 52302 (Marion, IA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Marion, IA, in ZIP code 52302, is set by HUD for 2026. For a two-bedroom unit, the FMR is $1040 per month. This figure represents 14.2% of the median household income in the area, which is $87,983. However, the actual rental prices in Marion are significantly higher than the FMR. According to Zillow, the median price for a two-bedroom rental is $189,306 annually, which translates to approximately $15,775 monthly. The price-to-FMR ratio is 15.2x, indicating that the actual rental costs are far above what the FMR suggests. This substantial gap between FMR and actual rents poses significant constraints for Section 8 voucher holders. They would find it challenging to secure housing that fits within their voucher limits, especially for larger units like three-bedroom ($1450) and four-bedroom ($1740) apartments. The disparity means that voucher holders must either settle for smaller units or seek housing outside the immediate area where rents are lower. #### Affordability & Renter Profile In Marion, IA, 22.6% of the population are renters, suggesting a moderate demand for rental properties. With a high occupancy rate of 93.7%, the market appears to be relatively tight, indicating strong competition among potential tenants. Given the median household income of $87,983, most residents can afford the higher-than-FMR rent prices, but this leaves a segment of the population reliant on government assistance such as Section 8 vouchers. The affordability challenge is particularly acute for low-income families who might rely on Section 8 vouchers. These families would struggle to find suitable housing within the FMR guidelines, potentially leading to a mismatch between the available housing stock and the needs of voucher recipients. This tight market could also drive up rents further, exacerbating the affordability issue. #### Investor Angle From an investor perspective, the ZIP code 52302 presents a mixed picture. While the actual rental prices are much higher than the FMR, the cash flow potential for properties rented at FMR levels is limited. For instance, a two-bedroom apartment renting at the FMR of $1040 would generate significantly less revenue compared to the market rate of around $15,775. This makes it difficult for investors to achieve positive cash flow if they strictly adhere to FMR guidelines. However, there is still a potential market for investors willing to accept Section 8 vouchers. The high occupancy rate suggests that demand for rental properties is robust, and investors could benefit from the steady stream of rental income provided by voucher holders. The investment grade in this area would likely be considered moderate due to the tight market conditions and the need to balance between market rates and FMR. #### Specific Actionable Insights 1. **Target Larger Units**: Investors should consider focusing on larger units such as three-bedroom ($1450) and four-bedroom ($1740) apartments. These units are closer to the FMR guidelines and are more likely to attract Section 8 voucher holders. Additionally, larger units often have higher market demand from families and could offer better cash flow opportunities. 2. **Consider Location Flexibility**: Given the high price-to-FMR ratio, investors might want to look beyond the immediate ZIP code 52302 for properties. Areas with slightly lower rents but still within commuting distance to Marion could provide better opportunities for positive cash flow while still catering to the needs of voucher holders. 3. **Evaluate Property Value**: Properties priced at or below the Zillow median of $189,306 for a two-bedroom unit could be attractive investments. However, investors should carefully evaluate the potential for rental income against property values and maintenance costs to ensure profitability. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 52302 is to **Hold**. While the market is tight and rents are significantly higher than FMR, there is still a viable niche for larger units that align more closely with FMR guidelines. Investors should focus on properties that can accommodate families and are located in areas with lower rents relative to the FMR. This strategy will help maximize the chances of attracting voucher holders and achieving positive cash flow.

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.