Section 8 Fair Market Rent (FMR) for ZIP 52591 - 2027

Investment Score for ZIP 52591

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

Investment Analysis by Bedroom Size

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

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

If a landlord is considering purchasing a property in ZIP code 52591 (Sigourney, IA) for Section 8 purposes, they must follow a structured decision-making process based on the financial metrics available. The first step is to evaluate whether the Fair Market Rent (FMR) of $970 can cover the debt service on a property valued at $141,582. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. To determine if the FMR clears these expenses, the landlord needs to calculate their total annual debt service and compare it against the annual income generated from the FMR. For instance, if the total annual debt service is $12,000, then $970 per month would indeed be sufficient to cover these costs. However, if the debt service exceeds $11,640 annually, the landlord should reconsider this investment.

The second question to address is the comparison between the market rent of $912 (as reported by the Census ACS) and the FMR. If the market rent is below the FMR, this indicates that the landlord could potentially charge the higher FMR rate without losing tenants due to unaffordability. This scenario would favor an investment in this ZIP code. Conversely, if the market rent is equal to or above the FMR, the landlord might face challenges in attracting tenants willing to pay the higher Section 8 rates, which could result in lower occupancy or necessitate lowering the rent to match market conditions.

The third consideration involves assessing the rental demand. In ZIP 52591, 28.8% of residents are renters. Additionally, the Days on Market (DOM) is listed as N/A, suggesting that there may be insufficient data to gauge how quickly properties are rented out. This lack of information about DOM makes it challenging to predict demand accurately. However, the percentage of renters does provide some insight. A rental rate of 28.8% suggests moderate demand, but it is crucial to understand the local housing market dynamics. If the landlord finds that there is a steady turnover of rental properties and a significant portion of residents are seeking affordable housing options, then the demand would likely support an investment in this ZIP code. Otherwise, if the competition for rental units is high and vacancy rates are low, it might indicate that the demand is saturated, making it a less favorable investment.

Decision Tree Summary:

• If FMR $970 clears debt service on a $141,582 property, proceed to the next step. Otherwise, do not invest.
• If market rent $912 is below FMR, it supports investment. If equal to or above FMR, reconsider unless other factors strongly favor it.
• If 28.8% of residents are renters and there's evidence of moderate to strong demand, invest. If demand is weak or uncertain due to lack of DOM data, further investigation is needed before deciding.

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.