FMR is below market; voucher rent may lag private rents.
0.54
1 BR
1 BR- 52324
0.57ratio
FMR$780
Market$1,380
vs market-$600
FMR is below market; voucher rent may lag private rents.
0.57
2 BR
2 BR- 52324
0.73ratio
FMR$1,020
Market$1,390
vs market-$370
FMR is below market; voucher rent may lag private rents.
0.73
3 BR
3 BR- 52324
0.95ratio
FMR$1,370
Market$1,440
vs market-$70
FMR is near market; voucher and private rents are aligned.
0.95
4 BR
4 BR- 52324
1.05ratio
FMR$1,620
Market$1,540
vs market+$80
FMR is near market; voucher and private rents are aligned.
1.05
0.700.800.901.001.101.201.30aligned range
Historical
FY 2023-2027
FMR
FY2027
Market rent
last ~365 days
Property value
--
Tax rate
--
Mortgage rate
--
Palo, IA fair market rent, FY 2027
For FY 2027, HUD's Small Area Fair Market Rent for a two-bedroom unit in Palo, IA is $1,020 a month. That is down 9.7% from $1,130 in FY 2026. Palo is in the Benton County, IA HUD Metro FMR Area. HUD also publishes the ZIP-level Small Area FMRs shown here, but unless the local housing authority has adopted them, vouchers are based on the metro-wide two-bedroom FMR of $982. The median county two-bedroom FMR in Iowa is $927, so Palo is 10% above it.
FY 2027 rent by bedroom
FY 2027 fair market rent by bedroom for Palo, IA
Bedrooms
FY 2026
FY 2027
Change
90–110% range
Studio
$780
$710
−9.0%
$639–$781
1BR
$860
$780
−9.3%
$702–$858
2BR
$1,130
$1,020
−9.7%
$918–$1,122
3BR
$1,520
$1,370
−9.9%
$1,233–$1,507
4BR
$1,800
$1,620
−10.0%
$1,458–$1,782
Fair market rent history, FY 2023–2027
Fair market rent by fiscal year for Palo, IA
Fiscal year
Studio
1BR
2BR
3BR
4BR
FY 2027
$710
$780
$1,020
$1,370
$1,620
FY 2026
$780
$860
$1,130
$1,520
$1,800
FY 2025
$810
$910
$1,200
$1,680
$2,000
FY 2024
$900
$1,010
$1,330
$1,860
$2,220
FY 2023
$850
$960
$1,260
$1,780
$2,120
Questions about Palo, IA rents
How much will Section 8 pay for a two-bedroom in Palo, IA?
Housing authorities set voucher payment standards, normally between 90% and 110% of the FMR. With the metro-wide two-bedroom FMR of $982, which applies unless the housing authority uses Small Area FMRs, that basic range is $884 to $1,080 a month; under the ZIP-level Small Area FMR of $1,020 it would be $918 to $1,122. The voucher pays the lower of the payment standard or the gross rent, minus the tenant's share, which is usually about 30% of adjusted monthly income. Confirm the local housing authority's current schedule before underwriting.
Which HUD fair market rent area is Palo, IA in?
Palo, IA is in the Benton County, IA HUD Metro FMR Area. Small Area FMRs are optional here; the metro-wide two-bedroom FMR is $982.
How much did fair market rent change in Palo, IA for FY 2027?
The two-bedroom FMR fell 9.7%, from $1,130 in FY 2026 to $1,020 in FY 2027. Since FY 2023 it has fallen 19.0%.
When do FY 2027 fair market rents take effect?
HUD's FY 2027 fair market rents took effect on October 1, 2026. When FMRs change, housing authorities generally have up to three months to bring payment standards back within 90% to 110% of the new FMR.
Source: HUD FY 2027 Small Area Fair Market Rents and area FMRs. Payment-standard ranges are 90% to 110% of FMR, HUD's basic range, not a housing authority's published schedule. How payment standards are set