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 Section 8 analysis for ZIP code 61468 centers around the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $880. However, the market rent data is currently unavailable, which poses a challenge in quantifying the exact gap in dollars and percentage.
Despite the lack of market rent data, we can still derive meaningful insights based on the available information. The median income in this area is $42,969, indicating a relatively modest economic environment. With 0.0% of residents being renters, it's clear that homeownership is the predominant form of housing in 61468. This low rental rate suggests that the demand for rental properties might be limited, making it difficult for landlords to charge above the FMR without risking vacancy.
In the absence of market rent figures, we must consider the implications of the FMR being potentially higher than the market rent. In such a scenario, landlords accepting Section 8 vouchers would find themselves in a favorable position. Voucher tenants pay a portion of their income towards rent, typically 30%, while the government covers the rest up to the FMR. Given the median income, voucher tenants would contribute approximately $12,890 annually, or about $1,074 monthly towards rent. This means landlords could expect a stable cash flow, even if the overall rental rates are lower than the FMR, making it a yield play. The government subsidy ensures that landlords receive the full FMR amount, thus protecting against potential revenue shortfalls.
If the FMR were to be lower than the market rent, landlords would face a different set of challenges. Accepting Section 8 tenants would mean renting out units at a rate below what the open market might bear, leading to a potential loss of income. Landlords must weigh the benefits of guaranteed payments from the government against the risk of lower rental income compared to non-voucher tenants. In either case, the decision should be informed by an understanding of the local rental market dynamics, which currently lacks precise data points.
To summarize, the FMR of $880 for ZIP 61468 is a key figure in determining the viability of Section 8 tenants for landlords. Without definitive market rent data, the analysis leans towards the potential advantages of a yield play, given the government's role in covering the difference between tenant contributions and the FMR. However, the lack of specific market rent figures prevents a complete assessment of the financial impact on landlords.
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.