FY2027 Small Area FMR · Iowa City, IA

ZIP 52240 Fair Market Rent & Payment Standards

HUD's FY2027 Small Area Fair Market Rent for a two-bedroom home in ZIP code 52240 (Iowa City, IA) is $1,260 a month, up 4.1% from FY2026. That is 7% above the Iowa City, IA area-wide FMR of $1,180.

2-bedroom SAFMR$1,260per month ▲ 4.1%

Area-wide 2 BR FMR$1,180Iowa City, IA

Rank in the area6thof 27 ZIP codes

Payment standard range, 2 bedrooms

90% of SAFMR$1,134

2 BR Small Area FMR$1,260

110% of SAFMR$1,386

Housing agencies may set voucher payment standards anywhere from 90% to 110% of the FMR without asking HUD.

Studio$1,010▲ 8.6%

1 BR$1,070▲ 4.9%

2 BR$1,260▲ 4.1%

3 BR$1,740▲ 3.6%

4 BR$2,110▲ 3.9%

FY2027 FY2026

Where 52240 sits in the Iowa City, IA area

Of the 27 ZIP codes HUD lists for the area, 52240 has the 6th highest two-bedroom Small Area FMR. Iowa City, IA is not on HUD's list of mandatory Small Area FMR areas, so voucher payment standards here are normally based on the area-wide FMR of $1,180 for two bedrooms; an agency that opts in to Small Area FMRs would use $1,260 for this ZIP code instead.

All unit sizes

Monthly gross rent including utilities
Unit	FY2027 SAFMR	Payment standard range	Area-wide FMR	FY2026 SAFMR
Studio	$1,010	$909 – $1,111	$942	$930
1 bedroom	$1,070	$963 – $1,177	$1,002	$1,020
2 bedrooms	$1,260	$1,134 – $1,386	$1,180	$1,210
3 bedrooms	$1,740	$1,566 – $1,914	$1,634	$1,680
4 bedrooms	$2,110	$1,899 – $2,321	$1,972	$2,030

A household renting a two-bedroom home at the Small Area FMR of $1,260 needs about $50,400 a year to keep housing costs at 30% of income. The area median family income is $121,400 and the 80% low-income limit for four people is $97,100. ZIP code 52240 lies mainly in Johnson County. See the Iowa City, IA county page for the full income limits table and the household check.

Nearby ZIP codes

ZIP	Place	Distance	2 BR SAFMR
52245	Iowa City	2.7 mi	$1,330
52242	Iowa City	3.0 mi	$1,230
52246	Iowa City	3.8 mi	$1,200
52235	Hills	4.2 mi	$1,210
52241	Coralville	6.6 mi	$1,180
52358	West Branch	10.2 mi	$1,160

Questions

What is the Fair Market Rent for ZIP code 52240?

HUD's FY2027 Small Area Fair Market Rents for 52240 are $1,010 (studio), $1,070 (1 BR), $1,260 (2 BR), $1,740 (3 BR) and $2,110 (4 BR) a month.

What is the Section 8 payment standard in 52240?

Housing agencies set payment standards between 90% and 110% of the applicable FMR without HUD approval. For a two-bedroom unit in 52240 that range is $1,134 to $1,386 if the agency uses Small Area FMRs. Ask your housing agency for its actual payment standard.

Which income limits apply in 52240?

The FY2026 income limits of the Iowa City, IA area apply: median family income $121,400, low-income (80%) limit $97,100 for a family of four.