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 | $780 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $850 | $116,102 | 0.73% | D |
| 2BR | $1,050 | $225,992 | 0.46% | F |
| 3BR | $1,390 | $344,938 | 0.4% | F |
| 4BR | $1,690 | $443,455 | 0.38% | F |
| 5BR | $1,960 | $546,121 | 0.36% | F |
U.S. Census Bureau data (2024)
The analysis for Section 8 properties in ZIP code 52807, which covers parts of Davenport, IA, reveals a significant opportunity for landlords and small-portfolio investors. The Fair Market Rent (FMR) for the area, as set by HUD for fiscal year 2024, is $920. In contrast, the actual market rent, measured by the Zillow Observed Rent Index (ZORI), stands at $778. This means that the FMR exceeds the market rent by $142, or approximately 18.3%.
The disparity between these two figures is a key factor in making Section 8 a lucrative yield play for property owners. Given that the median home value in Davenport is $361,335 and the median income is $72,579, it's evident that many residents rely on rental assistance programs to secure affordable housing. With 52.9% of the population being renters, there is a substantial demand for affordable housing options.
The higher FMR allows landlords to receive a rental payment that is closer to what they might charge in the open market, without the risk of losing tenants due to financial instability. This can lead to a more stable cash flow and potentially higher yields compared to renting to non-voucher holders at the current market rate. However, it's important to note that while the FMR provides a higher rent figure, the administrative overhead and compliance requirements associated with Section 8 properties must also be considered.
In summary, the $142 difference between the FMR and the ZORI makes Section 8 properties in ZIP 52807 an attractive investment option for those willing to navigate the program's regulations. The yield potential is enhanced by the high percentage of renters and the need for affordable housing in Davenport, IA.
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.