Location: Clark County, MO | Metro: Lee County, IA
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 | $710 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $980 |
| 3 Bedrooms | $1,200 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $980 | $108,253 | 0.91% | C |
| 3BR | $1,200 | $157,840 | 0.76% | D |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $970 for ZIP 52626 (Farmington, IA) can sufficiently cover the mortgage on a home priced at $136,932. To evaluate this, consider the current mortgage rates. As of now, a typical 30-year fixed-rate mortgage hovers around 6%, which would result in a monthly mortgage payment of approximately $820 for a $136,932 home. This means that the FMR of $970 comfortably exceeds the mortgage payment, leaving room for maintenance costs and other expenses.
The same investor could also raise concerns about the rental demand in Farmington, given the 20.6% rate of renters. While this figure is relatively low compared to urban areas, it does not necessarily indicate insufficient demand. With the median home price in the area being higher, the rental market may still support Section 8 properties. However, the data does not provide a comprehensive picture of the local rental market dynamics, such as vacancy rates or competition from non-Section 8 rentals.
A final objection might focus on whether voucher amounts will keep pace with market rents, currently at $729. Given the FMR is set at $970, it suggests that voucher amounts are designed to cover a significant portion of the market rent. Yet, the growth in market rents is a critical factor. If market rents increase faster than the FMR adjustments, the gap between the two could widen. Unfortunately, the data does not specify future trends or adjustments in voucher amounts, so caution is advised in relying solely on this metric.
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.