Location: Davenport-Moline-Rock Island, IA | Metro: Davenport-Moline-Rock Island, IA-IL MSA
| 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 |
U.S. Census Bureau data (2024)
The ZIP code 61260 is situated in a small-town neighborhood characterized by a modest population of 737 residents. Renters make up a significant portion of the local housing market at 26.1%, indicating a community where a considerable number of people prefer leasing over homeownership. The median household income in this area stands at $41,645, which is relatively low compared to national averages. This suggests that many residents might be seeking affordable housing options, making them potential candidates for Section 8 vouchers. The median home value of $157,802 reflects the overall affordability of the region, which could be attractive for both landlords and investors looking for properties within a manageable price range.
Moving into the specifics of rental economics, the Fair Market Rent (FMR) for ZIP 61260 in fiscal year 2024 is set at $860. This figure represents the government's benchmark for what is considered a fair rent amount for subsidized housing. In contrast, the Census Bureau reports an average market rent of $643, indicating that the actual rents charged are below the FMR. This discrepancy suggests that there is room for landlords and investors to potentially increase rents while still remaining competitive with the market and within the bounds of the Section 8 program.
Given these economic factors, ZIP 61260 would suit a hands-off voucher operator who seeks stable cash flows without the need for extensive property management. The existing low rents mean that landlords can collect Section 8 payments, which exceed the current market rates, providing a cushion against any future increases in maintenance or operational costs. However, for a hands-on value-add buyer, there are opportunities to improve property values and rents, aligning closer with the FMR without alienating tenants. Such an approach requires careful consideration of renovation costs and the ability to attract higher-paying tenants, but it can yield higher returns in the long run.
In summary, ZIP 61260 presents a balanced opportunity for Section 8 investors. It supports a hands-off strategy due to its affordability and the gap between market rents and FMRs. Simultaneously, it offers a chance for active management and value creation, appealing to those willing to invest time and capital to enhance their portfolio's performance.
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.