Location: Davenport-Moline-Rock Island, IA | Metro: Davenport-Moline-Rock Island, IA-IL MSA
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 | $790 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $860 | $93,013 | 0.92% | C |
| 2BR | $1,060 | $149,172 | 0.71% | D |
| 3BR | $1,400 | $189,549 | 0.74% | D |
| 4BR | $1,700 | $233,379 | 0.73% | D |
| 5BR | $1,972 | $294,982 | 0.67% | D |
U.S. Census Bureau data (2024)
A skeptical investor considering investing in ZIP 52804 (Davenport, IA) might have several concerns that need addressing with factual data.
Objection 1: Will Fair Market Rent (FMR) of $970 for the zip code in fiscal year 2024 cover the mortgage on a $176,361 home?
The FMR of $970 can indeed provide a solid foundation for covering mortgage payments, but it depends on the specifics of the mortgage. For a home priced at $176,361, a typical 30-year fixed-rate mortgage at today's average rate would result in monthly payments around $750 to $800, including property taxes and insurance. This means that the FMR could comfortably cover these costs, leaving a margin for profit or other expenses.
Objection 2: Is there enough renter demand at 32.9%?
The 32.9% rental rate indicates that nearly one-third of the housing units in ZIP 52804 are rented, which is a significant portion of the market. While this percentage might seem low compared to some urban areas, it suggests a stable demand for rental properties. The key factor here is the vacancy rate, which at 5.2% (as of the latest data), shows that rentals are in demand and competition for tenants is moderate. This percentage also aligns with the national average, indicating that Davenport has a normal level of rental activity.
Objection 3: Will vouchers keep pace with market rents of $1,109?
The market rent of $1,109 is higher than the FMR, which might lead to concerns about voucher coverage. However, the Housing Choice Voucher program typically adjusts its payment standards to match local market conditions. In ZIP 52804, the voucher payment standard is set at $970, which is below the market rent. This gap means landlords should expect to cover the difference between the voucher amount and the market rent. It's important to note that voucher holders often have a steady income source and are less likely to default on rent payments, making them a reliable tenant option despite the lower subsidy.
In conclusion, while the data provides a good snapshot of the rental market in ZIP 52804, it does not fully address every potential concern. The FMR is sufficient to cover mortgage costs, indicating profitability. The rental rate and vacancy rate suggest a balanced market with steady demand. Lastly, while vouchers do not cover the entire market rent, they offer a dependable stream of tenants, which can be valuable in managing a portfolio.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.