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 | $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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,350 | $219,012 | 0.62% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 61273 are straightforward. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment is set at $860 for the fiscal year 2024. This SAFMR is specifically tailored for this ZIP code, ensuring it reflects the local rental market conditions accurately.
The local market rent for a two-bedroom unit, according to Census ACS data, is $840. This means that landlords in ZIP 61273 can expect to receive slightly above the average market rent if they participate in the Section 8 program.
A Section 8 voucher pays a portion of the rent directly to the landlord on behalf of the tenant. The amount paid includes the tenant's contribution plus any utility allowances. The tenant typically pays 30% of their adjusted income towards rent, while the government covers the remainder up to the SAFMR limit.
To illustrate, let's assume a tenant has an adjusted monthly income of $1,000. Thirty percent of this income would be $300, which is the amount the tenant would pay towards rent. If the total rent is $860, then the government would pay the remaining $560 to the landlord.
Utility allowances vary but are generally around $200 for a two-bedroom apartment. These allowances are additional funds provided to cover utilities, though they do not increase the overall SAFMR cap. Therefore, if a landlord charges $860 for rent, the total reimbursement to the landlord could be $760 ($560 from the government subsidy plus $200 for utilities).
In ZIP 61273, where the market rent is $840, participating in the Section 8 program means landlords will receive $20 more than the average market rate per month for a two-bedroom unit. However, this does not account for the administrative costs associated with managing Section 8 properties, such as background checks, application processing, and ongoing compliance with HUD regulations.
The typical reimbursement gap or surplus for a two-bedroom voucher in ZIP 61273 is a surplus of $20 per month. This surplus indicates that landlords are better off financially by renting to Section 8 tenants compared to the average market rent, although other factors such as maintenance standards and tenant behavior should also be considered.
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.