Location: Louisa County, IA | Metro: Des Moines 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 | $770 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,440 |
| 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 | $1,100 | $162,902 | 0.68% | D |
| 3BR | $1,440 | $223,042 | 0.65% | D |
| 4BR | $1,530 | $229,194 | 0.67% | D |
U.S. Census Bureau data (2024)
In ZIP code 52637, which encompasses Mediapolis, Iowa, in Des Moines County, the economics of Section 8 housing can be straightforward if understood correctly. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) is set at $970 per month for fiscal year 2026. This figure is specific to this ZIP code and represents the maximum amount that the Housing Choice Voucher program will pay for rent in this area.
The local market rent, according to the Census ACS data, averages $1,040 per month. Landlords might wonder how the SAFMR impacts their bottom line when a tenant uses a voucher. Here's the breakdown:
The voucher pays up to $970 of the rent, but the total reimbursement includes both the tenant's contribution and any utility allowances. Typically, the tenant must pay 30% of their adjusted income towards rent. If we assume an average adjusted income of $1,616.67 (the amount where 30% would equal the difference between the market rent and SAFMR), then the tenant would contribute $485 to the rent. The remaining $485 would be covered by the voucher, bringing the total reimbursement close to the SAFMR rate.
Utility allowances vary, but they generally do not exceed $200 per month. These allowances are paid directly to the landlord on behalf of the tenant. Therefore, the total reimbursement a landlord receives for a two-bedroom apartment under a Section 8 voucher could be calculated as follows:
$970 (voucher payment) + $485 (tenant's contribution) + $200 (utility allowance) = $1,655 total potential reimbursement.
However, it's important to note that the total reimbursement does not exceed the market rent of $1,040. In this scenario, landlords would receive the full market rent of $1,040, including the tenant's contribution and any applicable utility allowance, without exceeding the SAFMR limit.
To illustrate, if the market rent is $1,040 and the tenant contributes $485, the voucher would cover $555 of the rent. Adding a utility allowance of $200, the landlord receives $785 from the voucher and $255 from the tenant, totaling $1,040, which matches the local market rent exactly.
The typical reimbursement gap or surplus in ZIP 52637 for a two-bedroom apartment is a surplus of $70 per month, given the SAFMR of $970 and the local market rent of $1,040. This means landlords can expect to receive the full market rent amount without taking a financial hit due to the Section 8 program.
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.