Location: Davenport-Moline-Rock Island, IA | Metro: Davenport-Moline-Rock Island, IA-IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
The market analysis for Section 8 investors targeting ZIP code 61237 in Davenport-Moline-Rock Island, IA-IL MSA, reveals several key points. The HUD Fair Market Rent (FMR) for a 2-bedroom unit in this area is set at $950 per month for fiscal year 2024. In comparison, the market rent for a similar unit is $1,143 per month. This indicates that voucher tenants will cashflow marginally at the FMR rate, given the 10.3% below market rent.
To derive the rent-to-price ratio, we need the median home value, which is currently not available. However, the gap between the FMR and the market rent suggests that landlords may face challenges renting out properties at the FMR without offering premium units. For instance, a landlord would need to ensure that the property meets high standards to attract tenants willing to pay the difference between the FMR and market rent.
The median days on market (DOM) and the percentage of price cuts are not specified, but these metrics are crucial for understanding the dynamics between renting and buying. If the DOM is low and the percentage of price cuts is minimal, it implies a strong demand for rentals, making the rental market favorable for investors.
The strongest investor angle in this market is stability. Despite the marginally lower FMR compared to the market rent, the consistent demand for rental properties ensures a steady stream of income. Additionally, the generous voucher coverage rate of 10.3% above market rent in the broader Davenport-Moline-Rock Island, IA-IL MSA, suggests that voucher tenants can still afford higher rents in some cases, providing a buffer for landlords.
Data Sources: FMR data from HUD (2027).
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.