Location: Davenport-Moline-Rock Island, IA | Metro: Davenport-Moline-Rock Island, IA-IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $900 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,640 |
| 4 Bedrooms | $1,990 |
| 5 Bedrooms | $2,308 |
| 6 Bedrooms | $2,585 |
| 7 Bedrooms | $2,792 |
| 8 Bedrooms | $2,932 |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 61278 is centered around the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $920. However, the current market rent data is not available, which complicates the direct comparison. Despite this, we can still analyze the potential impact of the FMR on rental properties in this area.
In ZIP 61278, only 5.4% of residents are renters, indicating a predominantly owner-occupied community. The median household income stands at $69,938, suggesting that most residents have the financial capability to purchase homes rather than rent. This context is crucial for understanding the dynamics of rental properties in the area.
If the FMR of $920 is higher than the actual market rent, it means that landlords who accept Section 8 vouchers could potentially see a higher yield compared to renting at market rates. This is because voucher tenants pay a portion of their income towards rent, and the government covers the rest up to the FMR limit. Landlords would receive a guaranteed income closer to the FMR, which could be more stable and profitable than relying on fluctuating market rents.
Conversely, if the FMR is lower than the market rent, landlords might face a shortfall when accepting Section 8 vouchers. In such a scenario, voucher tenants would pay less than what the market demands, leading to a lower overall rental income. This situation could be particularly challenging given the low percentage of renters in the area, as landlords might find it difficult to fill vacancies without offering competitive rates.
The absence of current market rent data makes it impossible to calculate the exact gap in dollars and percent. However, landlords should be aware of the implications of setting rents above or below the FMR. Accepting Section 8 vouchers can be a strategic decision based on the goal of achieving a steady, government-backed income or maximizing profits in a competitive market environment.
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.