Section 8 Fair Market Rent (FMR) for ZIP 52722 - 2027

Investment Score for ZIP 52722

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	$960
1 Bedroom	$1,040
2 Bedrooms	$1,290
3 Bedrooms	$1,710
4 Bedrooms	$2,070
5 Bedrooms	$2,401
6 Bedrooms	$2,689
7 Bedrooms	$2,904
8 Bedrooms	$3,049

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	$1,040	$143,158	0.73%	D
2BR	$1,290	$183,921	0.7%	D
3BR	$1,710	$276,134	0.62%	D
4BR	$2,070	$439,033	0.47%	F
5BR	$2,401	$632,382	0.38%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 52722 (Bettendorf, IA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 52722 is set by HUD for 2026. For a two-bedroom unit, the FMR is $1370 per month. However, the actual rental market in Bettendorf is significantly higher. The Zillow median price for a two-bedroom home is $175,723, which translates to a monthly rent of approximately $1032 based on a typical mortgage payment (assuming a 30-year fixed-rate mortgage at 4.5%, with 20% down payment). This indicates that the actual rents in the area are much closer to the Zillow median price than the FMR, with a price-to-FMR ratio of 10.7x. This high ratio suggests that the actual rents are far above the FMR, creating significant constraints for voucher holders. They may struggle to find units that accept their vouchers due to the disparity between the FMR and market rents. Additionally, landlords who do accept vouchers might face financial pressures since they are receiving less than what the market would typically bear. #### Affordability & Renter Profile In ZIP code 52722, the median household income is $101,546, and 24.2% of the population are renters. With an occupancy rate of 95.8%, the market appears to be quite tight, indicating strong demand for housing. Given the median income and the fact that 16.2% of it goes towards a two-bedroom unit’s FMR, renters in this area are generally well-off and can afford higher rents. However, the FMR is only a guideline, and actual rents are much higher. A two-bedroom unit’s FMR of $1370 represents just 13.5% of the median income, but the actual market rent is likely closer to $1032, which is still a substantial portion of the median income. This makes the market somewhat challenging for lower-income individuals who rely on Section 8 vouchers, as they will have difficulty finding affordable units. #### Investor Angle From an investor perspective, the ZIP code 52722 presents both opportunities and challenges. The actual market rent is significantly higher than the FMR, suggesting that investors who can secure tenants paying market rates will likely see positive cash flow. However, if they are targeting Section 8 voucher holders, the situation is different. Given the FMR of $1370 for a two-bedroom unit, an investor would need to ensure that their expenses (including mortgage payments, property taxes, insurance, maintenance, and other costs) do not exceed this amount. If we assume a purchase price of $175,723 for a two-bedroom unit, the monthly mortgage payment (with a 4.5% interest rate and 20% down payment) would be around $750. Adding typical property taxes ($150), insurance ($100), and maintenance ($120), the total monthly expenses would be approximately $1120. This leaves a small margin for profit when compared to the FMR of $1370, especially considering that the actual market rent is likely closer to $1032. The investment grade in this ZIP code would be considered moderate to low for Section 8-focused investors. While the area has strong demand and relatively high median incomes, the gap between FMR and market rents means that investors relying solely on Section 8 vouchers may struggle to achieve positive cash flow without significant cost control measures. #### Specific Actionable Insights 1. **Target Market Renters**: Investors should consider targeting market-rate renters rather than focusing exclusively on Section 8 vouchers. Given the strong demand and high median income, there is a good chance of securing tenants willing to pay more than the FMR, thus ensuring better cash flow. 2. **Cost Control Measures**: For those who wish to cater to Section 8 voucher holders, implementing strict cost control measures is essential. This includes keeping mortgage payments low by purchasing properties below the median price, reducing property taxes through tax abatements or exemptions, and minimizing maintenance costs through regular upkeep. 3. **Diversify Tenant Base**: Diversifying the tenant base to include a mix of market-rate and voucher holders can help balance the financial risks. This approach allows investors to leverage the higher market rents while still serving the needs of lower-income individuals. #### Bottom Line For Section 8-focused investors, the ZIP code 52722 presents a challenging environment due to the significant gap between FMR and market rents. The recommendation would be to **Skip** this ZIP code unless investors are willing to implement stringent cost control measures or diversify their tenant base. Alternatively, investors could focus on acquiring properties at a discount to the median price to improve the likelihood of achieving positive cash flow when renting to voucher holders.

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.