Section 8 Fair Market Rent (FMR) for ZIP 61232 - 2027

Location: Davenport-Moline-Rock Island, IA | Metro: Davenport-Moline-Rock Island, IA-IL MSA

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$740
1 Bedroom	$840
2 Bedrooms	$1,030
3 Bedrooms	$1,350
4 Bedrooms	$1,640
5 Bedrooms	$1,902
6 Bedrooms	$2,130
7 Bedrooms	$2,300
8 Bedrooms	$2,415

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

1,469

Median Household Income

$73,971

Housing Units

672

Renter Percentage

11.8%

Occupancy Rate

98.5%

Renter Occupied

The analysis for Section 8 properties in ZIP code 61232 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $920, while the Census American Community Survey (ACS) indicates that the market rent stands at $967. This represents a difference of $47, or approximately 5.1%, with the market rent being higher.

The disparity suggests that landlords who accept Section 8 vouchers might face a financial challenge, as they are receiving rental payments below the open-market rates. The lower FMR of $920 compared to the market rent of $967 means that landlords could potentially earn more by renting to non-voucher tenants. However, accepting vouchers can still be a strategic decision due to the stability and reliability of income from the government subsidy.

In ZIP 61232, only 11.8% of residents are renters, indicating a primarily owner-occupied area. The median home value of $208,897 and median income of $73,971 provide additional context. These figures suggest that while the majority of residents own their homes, those who do rent are likely to be part of a smaller, but still significant, segment of the population. Landlords must weigh the benefits of steady income from voucher programs against the potential for higher yields from market-rate rentals.

To illustrate the impact of this gap, consider the following:

Stability vs. Yield: Vouchers offer guaranteed rent and reduced vacancy risk, which can be crucial for small-portfolio investors seeking consistent cash flow.
Economic Context: With a median income of $73,971, many renters may rely on Section 8 assistance to afford housing, making it a vital source of tenants in the area.
Market Dynamics: In an area where only 11.8% of residents rent, competition for non-voucher tenants could be fierce, leading some landlords to prefer the security of voucher programs despite the lower rate.

The $47 per month gap translates into a substantial yearly difference of $564. While this may seem minor, it can significantly affect the overall profitability of a property when considering long-term investment strategies. Therefore, landlords and small-portfolio investors should carefully evaluate the trade-offs before deciding whether to participate in the Section 8 program.

Data Sources: FMR data from HUD (2027). 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.