Section 8 Fair Market Rent (FMR) for ZIP 52403 - 2027
Location: Cedar Rapids, IA | Metro: Cedar Rapids, IA HUD Metro FMR Area
Investment Score for ZIP 52403
D
Monthly Rent (2BR)
$1,020
Median Price (2BR)
$147,561
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 | $710 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
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 |
| 1BR |
$780 |
$123,660 |
0.63% |
D |
| 2BR |
$1,020 |
$147,561 |
0.69% |
D |
| 3BR |
$1,410 |
$210,396 |
0.67% |
D |
| 4BR |
$1,700 |
$304,318 |
0.56% |
F |
| 5BR |
$1,972 |
$463,687 |
0.43% |
F |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$74,703
To determine if you should buy in ZIP code 52403 (Cedar Rapids, IA) for Section 8 investments, follow these steps:
- If FMR ($940) clears debt service on a $200,929 property:
- Yes. The Fair Market Rent (FMR) of $940 for ZIP 52403 in fiscal year 2024 can cover the debt service on a property valued at $200,929, making it financially viable to invest in this area.
- If market rent ($1,281 ZORI) is above, at, or below FMR:
- Above. With a market rent of $1,281, which is higher than the FMR of $940, landlords can potentially charge the higher market rate for non-Section 8 tenants, thus maximizing profitability.
- At. If the market rent aligns closely with the FMR, landlords might still find it worthwhile to invest, as they can expect steady income from Section 8 tenants without the risk of market fluctuations.
- Below. If the market rent were below the FMR, investing would be less attractive because landlords would not be able to fully leverage the rental income potential of the property.
- If 23.0% renters + 34-day DOM indicate sufficient demand:
- Yes. The 23.0% of renters in the area, combined with a Days on Market (DOM) of 34 days, suggests a reasonable demand for rental properties. This indicates that there is a steady flow of potential tenants, making it feasible to fill vacancies quickly.
- No. If the percentage of renters was significantly lower or the DOM was substantially longer, it would suggest insufficient demand, leading to difficulties in finding tenants and managing cash flow.
- It Depends. While 23.0% of renters is a moderate figure, the DOM of 34 days could be seen as relatively short, indicating that demand is present but may fluctuate. Landlords need to assess their tolerance for vacancy risks and consider other local factors before deciding.
The decision to invest in ZIP 52403 for Section 8 properties hinges on the financial viability of the FMR covering debt service, the relationship between market rent and FMR, and the balance between the percentage of renters and the DOM. With the given data, the investment appears favorable, but landlords must also consider their own 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.