Location: Iowa City, IA | Metro: Iowa City, 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 | $1,050 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,830 |
| 4 Bedrooms | $2,210 |
| 5 Bedrooms | $2,564 |
| 6 Bedrooms | $2,872 |
| 7 Bedrooms | $3,102 |
| 8 Bedrooms | $3,257 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,320 | $156,923 | 0.84% | C |
| 3BR | $1,830 | $302,240 | 0.61% | D |
| 4BR | $2,210 | $392,707 | 0.56% | F |
| 5BR | $2,564 | $533,469 | 0.48% | F |
U.S. Census Bureau data (2024)
Tiffin, Iowa, located in Johnson County, stands out among other ZIP codes due to its unique data signature. With a population of 6,128 residents, Tiffin has a rental rate of 22.7%, which is slightly below the national average. The median income in Tiffin is $98,393, reflecting a middle-class community. Notably, the median home value is significantly higher at $328,120, indicating a stable housing market.
The economics of Section 8 vouchers in Tiffin are particularly interesting. The Fair Market Rent (FMR) for fiscal year 2024 is set at $1,160, while the market rent, measured by the Zillow Rent Index (ZORI), is $2,014. This disparity means that landlords in Tiffin can expect to receive a subsidy that is nearly $854 less per month than the typical market rent. Consequently, landlords should be prepared to offer competitive amenities and maintain high-quality properties to attract tenants who can cover the difference between the voucher amount and the market rate.
Based on the data signature, Tiffin appears to have a stable economic environment. The relatively high median home value suggests that homeownership is valued and that the local economy supports property appreciation. However, the lower rental rate indicates that homeownership remains the preferred option for most residents. For landlords and small-portfolio investors, this stability provides a predictable market where Section 8 vouchers can still play a role, albeit with an awareness of the gap between subsidized and market rents.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.