Location: Davenport-Moline-Rock Island, IA | Metro: Davenport-Moline-Rock Island, IA-IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $880 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,560 |
| 4 Bedrooms | $1,900 |
| 5 Bedrooms | $2,204 |
| 6 Bedrooms | $2,468 |
| 7 Bedrooms | $2,665 |
| 8 Bedrooms | $2,798 |
U.S. Census Bureau data (2024)
ZIP 61279, located within the Davenport-Moline-Rock Island, IA-IL MSA metro area, serves as a cash-flow anchor in a Section 8 portfolio strategy. The Federal Market Rent (FMR) for ZIP 61279 in fiscal year 2024 is set at $1130, which is slightly above the current market rent of $1125. This indicates that landlords participating in the Section 8 program can expect a stable and consistent cash flow, with a positive spread of $5 per unit.
The median home value in ZIP 61279 stands at $200,192. This figure suggests that the housing market in this area is relatively affordable, making it attractive for low-income households who often rely on Section 8 vouchers. The slight premium offered by the FMR ensures that landlords can cover their costs and generate a modest profit without having to significantly undercut market rates.
While ZIP 61279 does not present a strong case for an appreciation play due to the lack of significant price growth potential (price-cut share and days on market are not applicable), it does offer some diversification benefits. With a renter share of 12.2%, landlords can balance their portfolio with a mix of rental and owner-occupied properties. Additionally, the median income of $87,656 provides insight into the economic stability of the area, ensuring that there is a steady demand for rental properties and a reliable pool of tenants.
In conclusion, ZIP 61279 is best suited as a cash-flow anchor within a Section 8 portfolio. The positive spread between the FMR and market rent guarantees a steady stream of income, while the affordable median home value supports the ongoing need for rental units. Although it lacks the characteristics of an appreciation play, its economic stability and tenant base make it a solid choice for maintaining a balanced investment portfolio.
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.