Section 8 Fair Market Rent (FMR) for ZIP 61240 - 2027

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

Investment Score for ZIP 61240

N/A
Monthly Rent (2BR)
$1,580
Median Price (2BR)
$N/A
1% Rule
0%
Annual Yield
0%

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$1,180
1 Bedroom$1,280
2 Bedrooms$1,580
3 Bedrooms$2,090
4 Bedrooms$2,540
5 Bedrooms$2,946
6 Bedrooms$3,300
7 Bedrooms$3,564
8 Bedrooms$3,742

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
3BR $2,090 $272,851 0.77% D
4BR $2,540 $346,913 0.73% D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
5,795
Median Household Income
$113,220
Housing Units
2,508
Renter Percentage
5.9%
Occupancy Rate
90.1%
Renter Occupied
133

The ZIP code 61240, with a population of 5,795, has a relatively low percentage of renters at 5.9%. This indicates that the area is predominantly a homeowner-dominated region rather than a renter-heavy one. Given the median household income of $113,220, it is clear that the residents have a higher earning potential, which could suggest a preference for homeownership over renting.

While specific market rent figures are not provided, we can infer that typical rents would be lower compared to the median household income, making rental properties more affordable for those who choose to rent. The Federal Market Rent (FMR) for ZIP 61240 is set at $1,430 for fiscal year 2024. Assuming that the typical market rent is below this figure, let's say around $1,200, this would represent approximately 10.6% of the median household income. This is a reasonable proportion and suggests that even without vouchers, many households could afford typical market rents.

The scarcity of vouchers in this area is reflected by the low percentage of renters. Landlords in ZIP 61240 should not expect a high volume of Section 8 tenants due to the limited demand for rental housing and the higher income levels among residents. Instead, they should anticipate a tenant pool that consists mainly of individuals and families who can pay market rates, possibly supplemented by a few voucher holders.

To conclude, ZIP 61240 is not an ideal location for landlords looking to cater exclusively to Section 8 tenants. The area is characterized by a strong homeownership culture, and the majority of potential tenants are likely to be able to pay market rates without the need for subsidies. However, landlords may still encounter some Section 8 applicants, but these will be a minority of the overall tenant pool.

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.